ARE closes within prior day's range after lackluster session
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
ARE ended the week 2.73% higher at 162.90 after losing $0.91 (-0.56%) today, underperforming the S&P 500 (0.39%) ahead of tomorrow's Martin Luther King Jr. Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ARE as at Jan 17, 2020):
Friday's trading range has been $1.56 (0.95%), that's below the last trading month's daily average range of $1.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ARE.
In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 162.79 (S1). Prices are trading close to the key technical resistance level at 164.45 (R1). After having been unable to move lower than 162.84 in the previous session, the stock found buyers again around the same price level today at 162.80. The last time this happened on January 10th, ARE gained 1.39% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 160.06.
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 164.45 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 103 times, ARE closed higher 60.19% 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 59.22% with an average market move of 0.18%.