ARE finds buyers again around 156.86
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 10, 2020 | by Techniquant Editorial Team
ARE finished the week -1.29% lower at 158.57 after gaining $1.30 (0.83%) today, strongly outperforming the S&P 500 (-0.29%). Trading up to $0.73 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 158.40, the market confirmed its breakout through the prior session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (ARE as at Jan 10, 2020):
Friday's trading range has been $1.88 (1.19%), that's slightly below the last trading month's daily average range of $2.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ARE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 158.74 during the day, Alexandria Real found resistance at the 20-day moving average at 158.68. The last time this happened on November 13, 2019, ARE actually gained 0.55% on the following trading day. After having been unable to move lower than 157.03 in the previous session, the stock found buyers again around the same price level today at 156.86.
While ARE is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test December's close-by low at 154.59.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 51 times, ARE closed higher 50.98% 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 68.63% with an average market move of 1.15%.