With the recent news of Bill Gross’ resignation from Pacific Investment Management Co. (Pimco) and subsequent move to Janus Capital Group, Inc. (JNS ), many investors have gone back to caring about the income-generating segments of their portfolio. Generally speaking, bonds are known for stability, safety and income, but in the current market environment many investors are starting to look for income as well as growth in sectors such as real estate. (For more, check out: What to Expect from Pimco After Bill Gross .)

source: cohenandsteers.com

From an active trading perspective, the recent price action is setting up an interesting risk/reward situation for bullish traders. As you can see from the chart, the price has recently found support near the 200-day moving average (blue line). This is a key average used by large-scale traders and the recent buying pressure is suggesting that a reversal in the short-term downtrend is underway and likely to continue higher. At current levels, the fund currently offers a 3.18% yield and comes with a reasonable expense ratio of 0.35%. It wouldn’t be surprising to see investors hold on to their positions until the price closes below the moving average, which is currently trading at $83.15. Active traders will also use the bullish setups on the MACD. RSI and Fast Stochastic indicators to confirm the move higher and many will likely set their short-term target price near the swing high of $90.84. (For more, see: What Technical Indicators Can I Use to Find Undervalued Stocks? )

Simon Spells Growth

By analyzing the chart of Simon Property Group Inc. (SPG ) — the top holding at 7.5% of the iShares Cohen & Steers Realty Majors Index Fund — you’ll find that its trading setup is nearly identical to ICF shown above. For investors who want to focus their real estate investment dollars on the lucrative segments of regional malls, premium outlets and community lifestyle centers, then your best bet is to check out SPG. There are very few players that have the scale and resources that allow them to compete on the same level as SPG.

In addition, SPG is also an attractive choice for active traders because the continuation of the recent uptrend is confirmed by the bullish MACD crossover and bounce off the nearby ascending trendline. Traders will want to place buy orders as close to the trendline as possible and then protect it by entering a stop-loss order near $158.03, which is directly below the 200-day moving average. (For further reading, see: How to Analyze Real Estate Investment Trusts .)

The Bottom Line

Given the current market environment, many investors and traders are looking to real estate to supplement their income and growth strategies. Given the bullish setups on the charts of the iShares Cohen & Steers Realty Majors Index Fund and its top holding, Simon Property Group, now is looking like the ideal time to invest in REITs. (For more on this topic, see: What Are the Best Real Estate REIT ETFs .)