ARE pops to highest close ever
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
ARE finished Tuesday at 164.80 gaining $1.90 (1.17%), significantly outperforming the S&P 500 (-0.27%). Today's close at 164.80 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 164.36, the market confirmed its breakout through the previous session high after trading up to $0.64 above it intraday.
Daily Candlestick Chart (ARE as at Jan 21, 2020):
Tuesday's trading range has been $1.90 (1.16%), that's slightly below the last trading month's daily average range of $1.96. 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 higher than usual for ARE.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 163.10 earlier during the day, the share bounced off the key technical support level at 163.16 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 14th, ARE gained 1.14% on the following trading day. Alexandria Real found buyers again today around 163.10 for the third trading day in a row after having found demand at 162.80 in the prior session and at 162.84 two days ago.
Crossing above the upper Bollinger Band for the first time since January 16th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 160.30 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 162.80 where further sell stops could get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 486 times, ARE closed higher 56.17% 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 62.35% with an average market move of 0.46%.