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. Chart Advisor

    3 Charts That Suggest Now Is The Time To Invest In Real Estate (VNQ, SPG,PSA)

    Real estate assets have some of the strongest uptrends around. We'll take a look at three candidates poised for a move higher.
  2. Chart Advisor

    Stocks With More Upside Due to Bear Traps (TAP, SPY)

    A bear trap is a pattern that typically leads to at least a short-term rise in prices. Here are stocks exhibiting the pattern.
  3. Active Trading Fundamentals

    New Traders: Trade the Market in 5 Steps

    New traders shouldn’t throw money at securities without knowing why prices move. Follow these five steps to tilt the odds in your favor.
  4. Chart Advisor

    Watch For a Bounce in These Emerging Markets (BRF, PEK)

    While downtrends are clearly in control of the direction of many emerging market ETFs, short-term indicators suggest a bounce higher could be in the cards.
  5. Investing Basics

    Valuation Models: Apple’s Stock Analysis With CAPM

    The capital asset pricing model, or the CAPM, estimates the expected return of an asset based on the systematic risk of the asset’s return.
  6. Stock Analysis

    Will "FANG" Stocks Outperform in 2016?

    Facebook held the most bullish accumulation-distribution pattern into year’s end, telling investors to focus on this issue in 2016.
  7. Chart Advisor

    Stocks At Buy Points In Healthy Uptrends

    These stocks are in healthy long-term uptrends, and a recent pullback presents a buying opportunity.
  8. Chart Advisor

    The Uptrend Is Reversing In Financials

    Active traders are turning to financials because the close below several key long-term support levels suggest that the uptrend is about to reverse,
  9. Chart Advisor

    These 3 Charts Suggest Bears Control The Commodity Markets

    Many investors are wondering if they should be betting on a trend reversal in commodities. These charts suggest that a reversal might be further out than many hope.
  10. Chart Advisor

    Are Rises In These Stocks and REITs Sustainable?

    These stocks have been strong recently, but there are cautionary signs. Watch for these sell signals.
RELATED FAQS
  1. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  2. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
  3. Tame Panic Selling with the Exhausted Selling Model

    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>
  4. Point and Figure Charting Using Count Analysis

    Count analysis is a means of interpreting point and figure charts to measure vertical price movements. Technical analysts ... Read Full Answer >>
  5. 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 >>
  6. 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 >>
COMPANIES IN THIS ARTICLE
Trading Center