VNO breaks below Thursday's low
Vornado Realty Trust (VNO) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, VNO ended the week -4.18% lower at 67.46 after losing $0.34 (-0.5%) today, notably underperforming the S&P 500 (1.42%). Today's close at 67.46 marks the lowest recorded closing price since May 22nd. Closing below Thursday's low at 67.76, the market confirmed its breakout through the prior session low after trading up to $0.63 below it intraday.
Daily Candlestick Chart (VNO as at Oct 12, 2018):
Friday's trading range has been $1.48 (2.17%), that's above the last trading month's daily average range of $1.18. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for VNO.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 72.15.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Vornado Realty. Out of 542 times, VNO closed higher 51.66% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.32% with an average market move of 0.35%.