Digital Realty Trust is a REIT that invests in carrier-neutral data centers. It also provides peering and colocation services. The REIT, as of 2019, owned 225 operating data center locations spanning almost 35 million square feet across the US, Asia, Europe, Canada, and Australia. The demand for data centers is expected to go up with the increasing digitization of the economy and the arrival of 5G. Therefore, the long term prospects of Digital Realty look bright.
The long-term monthly chart for Digital Realty shows a consistent uptrend that began towards the end of 2013. The uptrend has regularly had pullbacks with the most recent one occurring in August 2020. The price fell about 20% before bouncing up from the $130 level that previously was resistant but is now acting as a support. The price is also close to the bottom of the long term trend. The confluence of these two areas of value makes a long trade a high probability one. The target price is $160 and a stop loss can be placed below the bottom of the long term trend, at around $118.

This trade has been entered into our portfolio at the prices that follow. Entry price $146.54. Stop-loss 18% below at $118 Take profit at the top of the long term trend at $166 with a potential profit of 13%.