ARE pushes through key technical resistance level
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Feb 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ARE ended Tuesday at 167.79 surging $2.98 (1.81%), slightly outperforming the S&P 500 (1.5%) following Monday's earnings report. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on December 18, 2019, ARE gained 1.06% on the following trading day. Today's close at 167.79 marks the highest recorded closing price ever. Closing above Monday's high at 166.00, the market confirmed its breakout through the prior session high after trading up to $3.05 above it intraday.
Daily Candlestick Chart (ARE as at Feb 04, 2020):
ARE reported earnings of $1.74 per share after Monday's market close. With analysts having expected an EPS of $1.79, Alexandria Real Estate Equities Inc. failed market expectations by -2.8%. The company's last earnings report was released on Oct. 28, 2019, when Alexandria Real Estate Equities Inc. reported earnings of $-0.44 per share missing market expectations by -125.0%.
Tuesday's trading range has been $3.65 (2.21%), that's far above the last trading month's daily average range of $2.16. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ARE.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 165.45 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Alexandria Real. Out of 29 times, ARE closed lower 62.07% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.07% with an average market move of -0.59%.