According to Rexford Industrial Realty’s own website, the company is the largest pure-play industrial REIT in the US. Its market cap, however, has been reduced to just ~$8B after the stock’s 60%+ decline over the past three years. This big bear market doesn’t correspond to Rexford’s fundamental development, though, since sales and funds from operations have been healthily growing. Can we expect its bear market to finally end soon then? The Elliott Wave chart below gives us a reason to believe that.
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The daily chart of Rexford Industrial shows that the decline from over $84 in April, 2022, is clearly corrective. There is just no way to see it as an impulsive structure. It looks like a (W)-(X)-(Y) double zigzag, with simple A-B-C zigzags in waves (W) and (Y) and an A-B-C-D-E triangle pattern in wave (X). The trend prior to April, 2022, was clearly bullish, so it makes sense for it to resume once this correction is complete.
We’re not in the business of picking tops and bottoms, and a new low in wave C of (Y) cannot be ruled out. But Rexford Industrial seems to be looking for the end of its downtrend already. Not to mention that at the current price of $33 a share, the stock trades at a P/FFO multiple of 14 and is starting to look like a good deal. We have no idea how Trump’s plans to reindustrialize America would eventually pan out, but Rexford sounds like a logical beneficiary.
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