SL Green Realty

A similar setup is shaping up in shares of SL Green Realty ( SLG), a REIT that invests in office and retail properties in the New York metropolitan area. SLG's unique portfolio and exposure to particularly high rent retail space makes it an interesting name right now -- but don't buy this REIT for its income generation abilities; it pays just a 0.60% dividend yield.

Instead, the inverse head and shoulders in this stock is a more attractive reason to be a buyer. Unlike the setup in GES, SLG's neckline is slanted downward, and its shoulders aren't symmetrical. Despite those factors, the trading implications are exactly the same for this REIT. We're looking for a breakout above the (currently) $70 neckline before it becomes a high probability trade.

When that happens, I'd recommend placing a protective stop just below the right shoulder at the 50-day moving average.

As of the most recently reported period, SLG was one of the top holdings at Ken Heebner's Capital Growth Management, comprising 2% of the total portfolio.

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