ARE closes within prior day's range
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
ARE ended the week 1.08% higher at 164.66 after losing $0.75 (-0.45%) today, but still slightly outperforming the S&P 500 (-0.9%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ARE as at Jan 24, 2020):
Friday's trading range has been $2.05 (1.24%), that's slightly below the last trading month's daily average range of $2.15. Weekly volatility is also lower, being 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 165.74 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, ARE actually gained 1.30% on the following trading day.
After trading down to 163.69 earlier during the day, the market bounced off the key technical support level at 164.45 (S1). The failure to close below the support might increase that levels significance as support going forward. The share ran into sellers again today around 165.74 for the third trading day in a row after having found sellers at 165.62 in the previous session and at 165.68 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 162.59 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 159 times, ARE closed higher 58.49% 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 62.26% with an average market move of 0.83%.