Pennsylvania Real Estate Investment Trust (PEI) has been trading sideways for more than a year now. Is this name ready to emerge from its basing pattern? Let's go across the Delaware River and check out the charts and indicators, on this name discussed by Jim Cramer Wednesday night on Mad Money.
In the daily bar chart of PEI, below, we can see a sideways market roughly bounded by around $9.00 on the lower end and the $12.50 area on the topside. Prices are roughly in the middle of this range now just below the rising 50-day moving average line and the flat to slightly rising 200-day average line. The daily volume pattern does not show anything unique, in my opinion, but the daily On-Balance-Volume (OBV) line shows a low in November and some on again and off again improvement.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a take profits mode and nearly at the zero line. A turn up again would be bullish and a move below the zero line would be bearish.
In this weekly bar chart of PEI, below, we can see the price movement over the past three years. Prices declined from around $26 to the single digits. From April 2017 prices have been bottoming. PEI has crossed above and below the 40-week moving average line and is currently just above it as it turns slightly positive. The weekly OBV line is neutral and the MACD oscillator is crossing above the zero line for an outright go long signal.
In this Point and Figure chart of PEI, below, we can see a small base pattern with an upside price target of $17.50. A trade at $12.50 will be a breakout on this chart.
Bottom line: Traders and investors interested in yield and some capital gains could look to buy PEI at current levels and add above $12.50 -- the breakout point on the Point and Figure chart. My price target is $17.50.