Corporate Office Properties Trust (NYSE: OFC)

Corporate Office Properties Trust is a real estate investment trust. The firm invests in real estate markets of United States. It specializes in acquiring, developing, owning, leasing and managing high quality office and data center properties.

Take a look at the 1-year chart of Corporate (NYSE: OFC) with the added notations:

1-year chart of Corporate (NYSE: OFC)

OFC has bounced on top of its $32 support (green) several times during the past six months. Now that the stock could be ready to start rolling back down towards that support again, traders should be able to expect some sort of bounce. However, if the $32 support level breaks, lower prices should follow.

The Tale of the Tape: OFC has a key area of support at $32. A trader could enter a long position at $32 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT