ARE stuck within tight trading range
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Apr 03, 2020 | by Techniquant Editorial Team
ARE finished the week -9.4% lower at 129.99 after edging lower $1.39 (-1.06%) today on low volume, but still slightly outperforming the S&P 500 (-1.51%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ARE as at Apr 03, 2020):
Friday's trading range has been $4.48 (3.46%), that's far below the last trading month's daily average range of $9.81. Weekly volatility is also lower, being 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 127.42 and 133.21 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Monday, ARE actually lost -5.25% on the following trading day.
Prices are trading close to the key technical support level at 127.42 (S1). Prices are trading close to the key technical resistance level at 135.50 (R1). The stock found buyers again today around 128.54 for the third trading day in a row after having found demand at 127.42 in the previous session and at 127.57 two days ago.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 127.42 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 157 times, ARE closed higher 56.05% 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 61.15% with an average market move of 0.79%.