ARE unable to break through key resistance level
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ARE finished Monday at 163.79 losing $0.87 (-0.53%), but still significantly outperforming the S&P 500 (-1.57%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ARE as at Jan 27, 2020):
Monday's trading range has been $1.30 (0.79%), that's far below the last trading month's daily average range of $2.16. 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.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star.
Prices are trading close to the key technical support level at 162.59 (S1). Unable to break through the key technical resistance level at 164.45 (R1), the share closed below it after spiking up to 164.66 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on January 15th, ARE actually gained 0.94% on the following trading day. After having been unable to move lower than 163.69 in the previous session, the market found buyers again around the same price level today at 163.36.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 165.74 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 162.59 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 218 times, ARE closed higher 55.05% 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 62.39% with an average market move of 0.87%.