• LTC has reached first support, line a, with stronger support in the $28.90 area (line b)
• The relative performance, or RS analysis, broke its downtrend, line c, last September and has pulled back to stronger support
• The on-balance volume (OBV) broke its downtrend, line d, in late October
• The OBV did make significant new highs in early 2012, but has now dropped below its weighted moving average (WMA)
• Initial resistance now stands in the $32 area

Rayonier Inc. (RYN) is a $5.4 billion conglomerate that manages and sells real estate and managed timberland properties in addition to producing cellulose products. It has a current ratio of 1.9 and yields 3.6%.

• RYN made a high in January of $47.56 and is now down 6.3% from the highs
• The next strong support is in the $42.65 area, line e
• The long-term uptrend, line f, is in the $39 area
• Relative performance confirmed the recent highs and is already back to first support; the long-term uptrend, line g, is significantly lower
• Weekly OBV confirmed the recent price highs but has now dropped below its weighted moving average
• OBV has next support at the uptrend (line h) with further support at line i
• RYN has initial resistance in the $45.60-$46 area

What It Means: If the broad market's correction is now underway, my analysis indicates it should be a buying opportunity. For those who are underinvested in stocks or want to add some yield to their portfolio, these two REITs look attractive at lower levels.

How to Profit: For LTC Properties, go 50% long at $29.92 and 50% long at $29.30 with a stop at $28.28 (risk of approx. 4.5%). On a move above $31.68, raise the stop to $29.70.

For Rayonier, go 50% long at $43.76 and 50% long at $42.86 with a stop at $39.78 (risk of approx. 8.1%). On a move above $45.60, raise the stop to $42.90.