With the markets struggling to gain any ground over the past few weeks, it's interesting that several REIT's remain in a position of strength. Vornado Realty Trust (NYSE:VNO) for instance, has been holding steady in a flag pattern as it consolidates a late April breakout. The prior breakout area was close to $90, despite the spike to $92.50 in a breakout failure earlier this year in March. VNO has basically held above that spike as it bases just under $97.50. This area is of key importance, as this was the level where VNO broke down at during the bear market in 2008. A move above these levels would further confound market participants, but it can't be ruled out.

While Macerich Company (NYSE:MAC) is still well below its 2008 peak ($76.50), it is also consolidating above its prior base despite the recent market weakness. In fact, it is perched just below multi-year highs near $53.50. MAC may not be ready to break this level just yet, as it is starting to back down from its highs again. The key level to watch below is $50, which held as support earlier in May. The 50-day moving average is rising up to this level as well, and a pullback to $50 should attract buyers. (For more, see Support And Resistance Reversals.)

Another REIT displaying relative strength is Glimcher Realty Trust (NYSE:GRT). GRT can be looked at in a couple of ways. It has been steadily rising in a channel since late 2010. It has respected the top and bottom of the channel on several occasions, and is currently somewhere in the middle of the channel. However, it also was respecting the $9.25 level as resistance through the early part of 2011 before finally clearing the level in late April. It has been holding above this level since then, as it trades sideways in a tight range. This level would be the one to watch for clues to GRT's next move. If GRT can get above it, it could signal a continuation move higher, with a drop below hinting as a possible breakdown. (For more, see The REIT Way.)

Federal Realty Investment Trust (NYSE:FRT) is already back to its prior breakout level, as the recent market weakness took its toll on the stock. Despite FRT pulling back 5% the past few weeks, it remains above its prior base, and it appears that buyers have started to step in near $84. This would be the logical area for support, and could be the turning point for FRT, especially if the markets can stabilize. A close under these levels would be more ominous, as it would call into question the April breakout.

Bottom Line
The REIT's have been incredibly resilient over the past several months, and they continue to show strength. If the markets intend to correct over the summer, it's doubtful that this group wouldn't be held back with it. However, if the markets stabilize and continue the rally, then this is a group that could easily move higher. (For more, see Big REIT Dividends.)

Charts courtesy of stockcharts.com

At the time of writing, Joey Fundora did not own shares in any of the companies mentioned in this article

Related Articles
  1. Trading Strategies

    How To Buy Penny Stocks (While Avoiding Scammers)

    Penny stocks are risky business. If want to trade in them, here's how to preserve your trading capital and even score the occasional winner.
  2. Chart Advisor

    Stocks to Short...When the Dust Settles

    Four short trades to consider, but not quite yet. Let the dust settle and wait for a pullback to resistance for a higher probability trade.
  3. Technical Indicators

    Using Moving Averages To Trade The Volatility Index (VIX)

    VIX moving averages smooth out the natural choppiness of the indicator, letting traders and market timers access reliable sentiment and volatility data.
  4. Chart Advisor

    Strategizing for a Market Fall...or Rally

    The downtrend isn't confirmed yet, so be prepared with trades for whether the stock market rallies or continues to fall. Here's how to do it.
  5. Trading Strategies

    Are You a Trend Trader or a Swing Trader?

    Swing traders and trend traders execute market timing strategies that require different skill sets.
  6. Technical Indicators

    Detrended Price Oscillator Trading Strategies

    The detrended price oscillator (DPO) offers a simple approach to cycle analysis, removing momentum and long-term trends from the equation.
  7. Investing

    Using Fibonacci to Analyze Gold

    Use Fibonacci studies to analyze gold by picking out hidden harmonic levels that can provide major support or resistance.
  8. Investing

    Predictions For The Stock Market

    Learn different choices and strategies that can be used to create a profit regardless of what direction the market is going.
  9. Chart Advisor

    Top ETF Performers YTD - They'll Surprise You

    The top performing ETFs of 2015 may surprise you. Here they are, and the outlook for them going forward.
  10. Chart Advisor

    Four ETFs for Trading Falling Crude Oil

    Commodity traders are turning toward oil because the recent move below a key support level is signaling a move lower. We'll look at four ETFs you can use to gain exposure.
  1. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  2. Indicator

    Indicators are statistics used to measure current conditions ...
  3. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
  4. Mass Index

    A form of technical analysis that looks at the range between ...
  5. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
  6. On-Balance Volume (OBV)

    A momentum indicator that uses volume flow to predict changes ...
  1. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  2. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  3. How do you know where on the oscillator you should make a purchase or sale?

    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
  4. What are the alert zones in a Fibonacci retracement?

    The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>
  5. How was the Fibonacci retracement developed for use in finance?

    The use of Fibonacci retracements in stock trading was popularized by noted technical analysts W.D. Gann and R.N. Elliott. ... Read Full Answer >>
  6. How was the stochastic oscillator developed?

    The history of the stochastic oscillator is filled with its own controversies and inconsistencies. Most financial resources ... Read Full Answer >>

You May Also Like

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!