Corporate Office Properties Trust
We're seeing the exact same setup right now in Corporate Office Properties Trust (OFC - Get Report). As the name implies, this REIT is an office building landlord. It's also a high yielder, with a 4% payout at current share price levels.
Like PEI, OFC is forming an uptrending channel. One big difference is that OFC has seen its trendline support level get tested more frequently than PEI has. While it may seem counterintuitive, more tests of support are actually a good thing because they demonstrate that shares can still catch a bid at their trendline. That makes support stronger in OFC's case.
With shares coming off of support at the start of this month, it makes sense to be a little patient if you're looking to enter a position in OFC. If history is any indication for this firm, we'll see another test of support before long.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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