ARE pushes through key technical resistance level
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ARE finished Thursday at 141.80 gaining $8.40 (6.3%), slightly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 139.75, Alexandria Real confirmed its breakout through the previous session high after trading up to $2.62 above it intraday.
Daily Candlestick Chart (ARE as at Mar 26, 2020):
Thursday's trading range has been $11.57 (8.61%), that's above the last trading month's daily average range of $9.16. Weekly volatility is also higher, being way 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 135.50 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, ARE gained 3.00% on the following trading day. Prices are trading close to the key technical resistance level at 148.35 (R1).
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 684 times, ARE closed higher 53.22% 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 56.14% with an average market move of 0.23%.