VNO closes above its opening price after recovering from early selling pressure
Vornado Realty Trust (VNO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, VNO ended the week 2.34% higher at 67.89 after gaining $0.19 (0.28%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 67.89 marks the highest recorded closing price since January 23rd. Trading up to $0.39 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 30th, VNO actually lost -0.92% on the following trading day. Closing above Thursday's high at 67.85, the market confirmed its breakout through the prior session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (VNO as at Feb 14, 2020):
Friday's trading range has been $0.49 (0.72%), that's far below the last trading month's daily average range of $0.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VNO.
One bearish candlestick pattern matches today's price action, the Hanging Man.
Buyers managed to take out the key technical resistance level at 67.84 (now S1), which is likely to act as support going forward. After having been unable to move above 67.85 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 67.89.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 68.68, upside momentum might speed up should Vornado Realty be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Vornado Realty. Out of 85 times, VNO closed higher 58.82% 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 six trading days, showing a win rate of 61.18% with an average market move of -0.01%.