ARE closes above its opening price after recovering from early selling pressure
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
ARE ended the week 0.48% higher at 145.70 after gaining $0.46 (0.32%) today, slightly underperforming the S&P 500 (0.46%). Trading up to $0.86 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, ARE actually lost -2.47% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ARE as at Jul 12, 2019):
Friday's trading range has been $1.39 (0.96%), that's far below the last trading month's daily average range of $2.46. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ARE.
After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
The share managed to close back above the 20-day moving average at 145.68. Prices are trading close to the key technical resistance level at 146.38 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 55 times, ARE closed higher 72.73% 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 65.45% with an average market move of 0.70%.