ABR plummets: Margin compression triggers 12.64% drop—is the $8.02 crash inevitable?

Drew Dosek Verified Investing

Arbor Realty Trust (ABR), a nationwide real estate investment trust specializing in commercial and multifamily loans, reported disastrous earnings on Friday, October 31st. While the REIT did beat earnings per share by 50.90%, it missed badly on revenue, falling short by a significant 27.23%.

The market immediately blamed the margin compression, which was caused by an increase in delinquent and modified loans. This news sent the stock plunging 12.64% on the day.

Looking at the technical damage, the price finished Friday off the intraday lows of $9.61 at $10.09. Critically, the stock is currently resting right on the major technical support level at $10.01. This is the immediate pivot to watch. If bulls can maintain this floor, the first resistance target to re-attack is located at $11.44.

The issue is that the significant support levels below are much further down. If the $10.01 floor fails, the next major line of defense doesn't arrive until the COVID-lows inclining trendline at $8.94. Beyond that, there is minor support at the daily bottoming tail from May at $8.43, followed by the ultimate downside risk: the long-term declining trendline at approximately $8.02. This is a high-stakes battle for $10.01—its defense is mandatory to avoid a steep technical collapse.

Author

Drew Dosek

Verified Investing

Passionate technical and cycle analyst committed to empowering traders through data-driven insights.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.