American Campus Communities: A Back-to-School Short

American Campus Communities (ACC Quote), a real estate investment trust (REIT) that specializes in student housing, appears to be setting up for a short trade.

Shares of this name have been forming a downtrend channel since the beginning of 2007, when the price fell from a high near $32.50. Since the resistance at $32.50 led to lower prices, the stock has been volatile within the downtrend channel.

Each reversal has been producing between $2 and $4 moves in the share price. The latest reversal for this REIT began in July at $24.30, and it has now gone back to $28.60.

The uptrend in shares of American Campus Communities has produced a stronger-than-normal reversal of just over $4. The reversal has now moved back to the downtrend resistance channel, and the downtrend resistance is just under the 200-period moving average. ...