Vornado Realty Trust, the real estate investment trust, is back on its support area and this is a strategic entry point.

The high valuation of the group (P/E 35x)shows a great investors confidence in it because there are ready to pay a high price for the stock. Moreover, the Thomson Reuters consensus revised EPS estimates upward for this year and that let see a great potential for the security on the stock market.

From a technical viewpoint, the trend is neutral in the short term. The security is trading between USD 79.3 and USD 85.1. The latest downtrend pushed the security upon contact with important levels. These supports, respectively at USD 80.8 and USD 79.35, could stop the bearish trend of these last days.

Ideally, investors will take a long position nearby the USD 80.8 support currently tested, in order to benefit from a technical rebound. The USD 85.1 is the first goal. This strategy should be covered by a stop loss placed under the USD 79.35 support because a breakdown of this level would invalidate it.