ARE finds buyers around 145.05 for the forth day in a row
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ARE finished the week 3.93% higher at 146.99 after gaining $1.56 (1.07%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ARE as at May 22, 2020):
Friday's trading range has been $2.49 (1.72%), that's far below the last trading month's daily average range of $4.52. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ARE. Prices continued to consolidate within a tight trading range between 144.50 and 149.80 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, 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 May 15th, ARE gained 2.78% on the following trading day.
Prices are trading close to the key technical resistance level at 147.83 (R1). The stock was bought again around 145.05 after having seen lows at 144.86, 144.50 and 144.57 in the last three trading sessions. Obviously there is something going on at that level.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 148.33 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 144.50 where further sell stops could get triggered. As prices are trading close to May's high at 155.14, upside momentum might speed up should the market mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Alexandria Real. Out of 659 times, ARE closed higher 52.05% 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 63.73% with an average market move of 0.72%.