SL Green Realty Corp. (SLG) , an integrated real estate investment trust, or REIT, is Manhattan's largest office landlord. The stock has been under selling pressure so let's check out the condition of the charts and indicators.
In the daily bar chart of SLG, below, I can see that the stock has lost a lot of ground the past 12 months. Share prices are in a longer-term downward trend and trade below the declining 50-day moving average line and the declining 200-day moving average line.
The trading volume has increased on the decline and tells me that traders and investors are voting with their feet. The On-Balance-Volume (OBV) line has made a new low for its long move down and tells me that sellers of SLG are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of SLG, below, I see a bearish chart. The shares are in a longer-term decline. SLG trades below the bearish 40-week moving average line. Bearish candles (red) and no lower shadows tells us that the bears are in control.
The weekly OBV line shows weakness the past two years. The MACD oscillator is bearish and poised to cross to the downside again for another outright sell signal.
In this daily Point and Figure chart of SLG, below, I can see that the software is projecting a potential downside price target in the $12 area.
In this second Point and Figure chart of SLG, below, I used weekly price data. Here the chart also suggests a price target in the $12 area.
Bottom-line strategy: The charts of SLG are not pretty and probably headed lower. Avoid the long side of SLG.
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