APLE closes within prior day's range
Apple Hospitality REIT Inc. (APLE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, APLE ended Thursday at 9.57 gaining $0.31 (3.35%) on high volume, strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (APLE as at Mar 26, 2020):
Thursday's trading range has been $1.19 (12.67%), that's slightly above the last trading month's daily average range of $1.06. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for APLE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The market managed to close above the 20-day moving average at 9.53 for the first time since January 17th. When this moving average was crossed above the last time on January 17th, APLE actually lost -0.81% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Apple Hospitality. Out of 78 times, APLE closed lower 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.97% with an average market move of -0.37%.