ARE dominated by bulls lifting the market higher throughout the day
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, ARE ended the week 4.4% higher at 174.93 after gaining $1.35 (0.78%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 174.93 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 174.80, the share confirmed its breakout through the previous session high after trading up to $0.22 above it intraday.
Daily Candlestick Chart (ARE as at Feb 14, 2020):
Friday's trading range has been $1.36 (0.78%), that's far below the last trading month's daily average range of $2.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ARE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, ARE gained 0.10% on the following trading day.
After having been unable to move above 174.80 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 175.02.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 167.07.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 88 times, ARE closed higher 51.14% 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 64.77% with an average market move of 0.96%.