ARE closes below its opening price unable to hold early session gains
Alexandria Real Estate Equities Inc. (ARE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ARE ended Wednesday at 164.64 gaining $0.99 (0.6%), strongly outperforming the S&P 500 (-0.46%). Trading $1.62 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ARE as at Sep 16, 2020):
Wednesday's trading range has been $3.16 (1.92%), that's slightly below the last trading month's daily average range of $3.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ARE.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on September 3rd, ARE lost -1.86% on the following trading day.
Prices are trading close to the key technical support level at 162.44 (S1). After having been unable to move lower than 163.25 in the previous session, Alexandria Real found buyers again around the same price level today at 163.39.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alexandria Real. Out of 394 times, ARE closed higher 54.57% 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 62.69% with an average market move of 0.81%.