VNO closes above its opening price after recovering from early selling pressure
Vornado Realty Trust (VNO) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, VNO ended the week 4.85% higher at 70.06 after gaining $0.16 (0.23%) today, notably outperforming the S&P 500 (-0.92%). Today's close at 70.06 marks the highest recorded closing price since October 10th. Trading up to $0.42 lower after the open, Vornado Realty managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, VNO gained 0.78% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VNO as at Nov 09, 2018):
Friday's trading range has been $0.74 (1.06%), that's far below the last trading month's daily average range of $1.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for VNO.
Prices are trading close to the key technical resistance level at 70.77 (R1). After having been unable to move above 70.17 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 70.21.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 68.07.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Vornado Realty. Out of 492 times, VNO closed higher 52.44% 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 54.47% with an average market move of 0.34%.