HomeTrading strategiesHistorical past Says Steer Away from This REIT

Historical past Says Steer Away from This REIT

American Tower inventory pulled again to a traditionally bearish trendline

This commentary first appeared on Forbes Nice Speculations, the place Schaeffer’s Funding Analysis is a daily contributor.

Shares of American Tower Corp (NYSE:AMT) are shifting decrease this afternoon, down 3.5% at $182.52 finally test. The true property funding belief (REIT) has struggled long run, shedding 27% over the previous 12 months. Overhead resistance is looming as nicely, from a trendline with traditionally bearish implications.

Per Schaeffer’s Senior Quantitative Analyst Rocky White, American Tower inventory is now inside one customary deviation of its 80-day shifting common. Previously three years, the shares have seen seven related alerts, and had been constructive one month later simply 14% of the time, averaging an 2.3% loss. A transfer of comparable magnitude would put AMT again beneath $179, or inside a chip-shot of the inventory’s October lows.

AMT Chart August 92023

Optimism seems able to be unwound within the choices pits. On the Worldwide Securities Trade (ISE), Cboe Choices Trade (CBOE), and NASDAQ OMX PHLX (PHLX), American Tower inventory’s 50-day name/put quantity ratio of two.36 ranks within the highest percentile of its annual vary. Echoing this, the fairness’s Schaeffer’s put/name open curiosity ratio (SOIR) of 0.71 sits increased than solely 34% of annual readings.

Now seems like an reasonably priced time to weigh in with choices, too. The inventory’s Schaeffer’s Volatility Index (SVI) of 29% stands within the twenty ninth percentile of readings from the previous 12 months. In less complicated phrases, choices merchants are pricing in comparatively low volatility expectations — a boon for consumers.

Analysts may additionally chime in with downgrades. Heading into right now, 14 of the 16 protecting brokerage companies sport a “purchase” and “robust purchase” score.

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