Trulia (
TRLA
)
ripped 56% higher last month. But this housing stock remains off
many investors' radars.
This is a great stock to own if you're a believer in the
housing recovery, which I am. Trulia offers free housing data to
consumers. Potential homebuyers can use Trulia.com to find free
data about price trends, neighborhoods and other important
research categories.
In return for delivering such a useful service, the company
receives money from advertisements and real estate agents looking
to drum up business. Trulia charges real estate agents a monthly
fee for receiving a prominent placement in listings. The
advertising business draws money through display advertising with
fees paid on a per-impression or per-click basis.
The U.S.
housing recovery
is picking up steam. Moreover,
mobile advertising
is a huge industry. Trulia benefits from both hot trends.
This chart shows the price of
TRLA
shares along with two important support levels to
monitor.
So it's no wonder the stock popped in January. Volume was high
during the ascent, indicating extra-positive sentiment for the
stock.
Though the shares have rallied strongly, more gains appear
likely. After topping at $25.90, the stock stalled before moving
onto higher highs. This reprieve turned out to be a healthy
consolidation, and showed traders where to expect support on
another pullback.
Buyers should look for strong support near $23.50, which acted as
near-term support during this huge rally and was once a previous
resistance zone (top blue line above). There is another
established support region at $21 (bottom blue line above) should
$23.50 fail. The long-term trend favors TRLA and I'm expecting
the shares to reach $30.
Equities mentioned in this article: TRLA
Positions held in companies mentioned above:
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