Hudson Pacific Properties Stock Set to Break Out
Hudson Pacific Properties, Inc. (NYSE: HPP), a West Coast real estate investment trust (REIT), is setting up for a major breakout higher. The real estate stock has surged more than 20% since early February, and after a recent dip, the stock is in position to rally another 20%.
The key in looking for this rally to take place is in a familiar chart pattern in which the stock is trading. The pattern, an ascending triangle, is an easily visible pattern that gives us a clear price target.
You can see its share price is met with a strong resistance level right around $36 per share. The pullbacks from there, however, are turning around quicker, giving us an upward trendline for support. Take a look:
It is just a matter of time before the price breaks out. Considering that most ascending triangle patterns are continuation patterns, meaning the stock usually breaks out in the same direction it was heading in to begin with, we can look for an upward breakout through the red line.
Once price breaks out, the price it will quickly race to is $42.50. We figure that out simply by taking the height of the pattern, $7.50, and adding it to the red line on the chart. From the stock’s current price, that equates to a 21.75% gain.
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