ARE pushes through Thursday's high
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, ARE finished the month 9.43% higher at 177.55 after gaining $1.42 (0.81%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 177.55 marks the highest recorded closing price ever. Trading up to $2.06 lower after the open, Alexandria Real managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 176.56, the share confirmed its breakout through the previous session high after trading up to $1.07 above it intraday.
Daily Candlestick Chart (ARE as at Jul 31, 2020):
Friday's trading range has been $4.22 (2.4%), that's above the last trading month's daily average range of $3.45. Weekly volatility is also higher, being slightly above 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 173.41 and 177.64 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on Monday, ARE gained 2.01% on the following trading day.
After trading down to 173.41 earlier during the day, the stock bounced off the key technical support level at 173.50 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 173.83 in the prior session, the market found buyers again around the same price level today at 173.41.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 166.90.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 177.64 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Alexandria Real. Out of 476 times, ARE closed higher 56.93% 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 63.03% with an average market move of 0.44%.