ARE breaks back above 50-day moving average
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ARE finished Monday at 160.78 gaining $2.21 (1.39%), outperforming the S&P 500 (0.7%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (ARE as at Jan 13, 2020):
Monday's trading range has been $1.76 (1.11%), that's slightly below the last trading month's daily average range of $2.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ARE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on January 10th, ARE gained 1.39% on the following trading day.
The market managed to close back above the 50-day moving average at 158.82 for the first time since January 6th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 161.58 where further buy stops could get triggered. With prices trading close to this year's high at 162.42, upside momentum might accelerate should Alexandria Real be able to break out to new highs for the year. Further buying could move prices higher should the market test December's close-by high at 163.28.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 52 times, ARE closed higher 55.77% 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 57.69% with an average market move of 0.34%.