VNO still stuck within tight trading range
Vornado Realty Trust (VNO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
VNO finished the month 5.52% higher at 38.21 after losing $0.37 (-0.96%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VNO as at Jun 30, 2020):
Tuesday's trading range has been $1.24 (3.23%), that's below the last trading month's daily average range of $1.83. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VNO. Prices continued to consolidate within a tight trading range between 36.25 and 38.83 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 38.60 (R1), the stock closed below it after spiking up to 38.83 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 38.59 in the previous session, Vornado Realty ran into sellers again around the same price level today, failing to move higher than 38.83. The last time this happened on June 26th, VNO actually gained 5.29% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 39.72 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 36.25 where further sell stops might get activated. As prices are trading close to June's low at 36.02, downside momentum could speed up should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Vornado Realty. Out of 738 times, VNO closed higher 54.07% 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 52.44% with an average market move of 0.14%.