ARE pushes through Wednesday's high
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
ARE finished Thursday at 145.16 gaining $2.00 (1.4%), strongly outperforming the S&P 500 (0.25%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 144.48, the market confirmed its breakout through the prior session high after trading up to $0.81 above it intraday.
Daily Candlestick Chart (ARE as at Aug 15, 2019):
Thursday's trading range has been $1.85 (1.29%), that's 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 slightly lower than usual for ARE.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 28th, ARE actually gained 1.49% on the following trading day.
Alexandria Real managed to close back above the 100-day moving average at 144.38 for the first time since August 9th. Prices are trading close to the key technical resistance level at 145.90 (R1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 147.10 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 118 times, ARE closed higher 55.93% 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 59.32% with an average market move of 0.78%.