VNQ closes higher for the 2nd day in a row
Vanguard Real Estate (VNQ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VNQ finished the month 1.42% higher at 78.53 after gaining $0.92 (1.19%) today.
Daily Candlestick Chart (VNQ as at Jun 30, 2020):
Tuesday's trading range has been $1.53 (1.96%), that's below the last trading month's daily average range of $2.06. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VNQ. Prices continued to consolidate within a tight trading range between 75.66 and 78.91 where it has been caught now for the whole last trading week.
After spiking up to 78.91 during the day, Vanguard Real found resistance at the 100-day moving average at 78.72. The last time this happened on January 6th, VNQ lost -1.11% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 80.93 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Vanguard Real. Out of 718 times, VNQ closed higher 56.27% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.94% with an average market move of 0.26%.