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Realty Income broke below 200 MA

Realty Income broke 200 MA support in today’s session and many investors panicked asking why did it happen? However, as you can see on the chart below, buyers stepped in and pushed the stock above 200 day MA, but for a moment only. It closed below on a low volume.

Should you be worried about this price action? As a long term investor this is definitely a great opportunity to buy more shares. Is it time to rush in right now? Probably not. We still may see more pressure down in this stock, but I am definitely getting ready to buy more shares of this stock.

Look at today’s price action:

Realty Income

The price dropped below 200 day MA but buyers pushed it back above it. The candle has a long shadow and it may indicate an exhaustion, however, volume was below average. From the long term perspective we still may have a quite long way down to go:

Realty Income

The stock may go all the way down to $38 per share, which would be an excellent buy point. Should investors be scared? I do not think so. Realty Income proved itself over time that it is a well managed company and historically it survived all catastrophes, downtrends and sell-offs.

Realty Income

The red line on the chart above indicates a price action of the stock, the blue line indicates the dividend. Except one moment in 2005 the stock was consistently raising the dividends even though the price action was negative and the stock was losing.

For Monday I am planning on opening a trade order to buy more shares of this stock.

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