ARE climbs to highest close ever
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ARE finished Thursday at 163.81 gaining $1.52 (0.94%), slightly outperforming the S&P 500 (0.84%). Today's close at 163.81 marks the highest recorded closing price ever. Closing above Wednesday's high at 163.72, the market confirmed its breakout through the previous session high after trading up to $0.73 above it intraday.
Daily Candlestick Chart (ARE as at Jan 16, 2020):
Thursday's trading range has been $1.61 (0.99%), that's below the last trading month's daily average range of $2.05. 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 higher than usual for ARE.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 162.79 (S1).
Crossing above the upper Bollinger Band for the first time since October 24, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 159.82 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on October 18, 2019, ARE gained 0.99% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 337 times, ARE closed higher 51.93% 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 57.27% with an average market move of 0.41%.