ARE still stuck within tight trading range
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jan 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ARE ended Wednesday at 164.52 edging higher $0.14 (0.09%), slightly outperforming the S&P 500 (-0.09%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ARE as at Jan 29, 2020):
Wednesday's trading range has been $1.88 (1.14%), that's below the last trading month's daily average range of $2.22. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly 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 Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 7th, ARE actually gained 1.33% on the following trading day.
After trading down to 163.57 earlier during the day, the stock bounced off the key technical support level at 164.45 (S1). The failure to close below the support could increase that levels importance as support going forward. The market was bought again around 163.57 after having seen lows at 163.42, 163.36 and 163.69 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 165.74 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 163.36 where further sell stops could get triggered.
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 490 times, ARE closed higher 55.92% 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 62.24% with an average market move of 0.48%.