ARE finds buyers around 162.68 for the forth day in a row
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 22, 2020 | by Techniquant Editorial Team
ARE finished Wednesday at 163.28 losing $1.52 (-0.92%), underperforming the S&P 500 (0.03%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ARE as at Jan 22, 2020):
Wednesday's trading range has been $3.00 (1.82%), that's far above the last trading month's daily average range of $2.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ARE. Prices continued to consolidate within a tight trading range between 162.68 and 165.68 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Regardless of a strong opening Alexandria Real 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.
After trading down to 162.68 earlier during the day, the market bounced off the key technical support level at 163.16 (S1). The failure to close below the support might increase that levels importance as support going forward. The stock was bought again around 162.68 after having seen lows at 163.10, 162.80 and 162.84 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on November 1, 2018, ARE actually lost -1.77% 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 160.51.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 104 times, ARE closed higher 60.58% 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 58.65% with an average market move of 0.18%.