ARE closes above its opening price after recovering from early selling pressure
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
ARE finished Thursday at 165.41 gaining $2.13 (1.3%), notably outperforming the S&P 500 (0.11%). Today's close at 165.41 marks the highest recorded closing price ever. Trading up to $1.09 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 10th, ARE gained 1.39% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ARE as at Jan 23, 2020):
Thursday's trading range has been $3.03 (1.85%), that's far above the last trading month's daily average range of $2.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been way 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 162.59 and 165.68 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 162.59 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 importance as support going forward. Prices are trading close to the key technical resistance level at 165.68 (R1). After having been unable to move lower than 162.68 in the previous session, the market found buyers again around the same price level today at 162.59.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 165.68 where further buy stops could get activated.
Among the eight 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 488 times, ARE closed higher 56.15% 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 62.30% with an average market move of 0.47%.