ARE finds buyers again around 163.11
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
ARE finished Thursday at 165.04 edging lower $0.37 (-0.22%), underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ARE as at Jul 02, 2020):
Thursday's trading range has been $5.33 (3.17%), that's slightly above the last trading month's daily average range of $5.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ARE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 167.80 (R1). After having been unable to move lower than 162.76 in the prior session, Alexandria Real found buyers again around the same price level today at 163.11. The last time this happened on June 26th, ARE actually lost -0.12% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 485 times, ARE closed higher 53.20% 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 60.21% with an average market move of 0.49%.