With Vornado Realty Trust, the Focus Is on the Future

I have two new price targets for this REIT.

I reviewed the charts of Vornado Realty Trust (VNO) on May 23, and wrote that "I worked in New York for the majority of my business career. I have seen ups and downs in the city's fortunes but it has always rebounded and reinvented itself. Optimistic and patient traders who can risk below $10 could probe the long side of VNO."

Let's check and see how the charts have changed in the past four weeks.

In this daily bar chart of VNO, below, I can see that prices have rallied since my last review on May 23. VNO has rallied above the 50-day moving average line and dipped to retest that indicator the other day. The declining 200-day moving average line intersects around $20 and could be tested in the weeks ahead.

The trading volume shows a pickup in turnover in June. The On-Balance-Volume (OBV) line improved in May and dipped in June but has not made a new low. The Moving Average Convergence Divergence (MACD) is above the zero line.  

 

In this weekly Japanese candlestick chart of VNO, below, I can see some improvements. Prices are still below the declining 40-week moving average line. Prices are moving up from a small base pattern. The weekly OBV line has turned upwards and so has the MACD oscillator.

 

 

 

In this daily Point and Figure chart of VNO, below, I can see a base pattern and an upside price target in the $22 area.

 

 

In this weekly Point and Figure chart of VNO, below, I can see a price target in the $18 area.

 

Bottom line strategy: Traders who went long last month should continue to hold longs. $18 and $22 are my price targets now. VNO is going to spend $1.2 billion to overhaul two of their office buildings near Penn Station. Look to the future.

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