AVB closes higher for the 2nd day in a row
AvalonBay Communities Inc. (AVB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AVB finished the month -0.88% lower at 154.64 after gaining $1.64 (1.07%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 153.00, the stock confirmed its breakout through the previous session high after trading up to $2.37 above it intraday.
Daily Candlestick Chart (AVB as at Jun 30, 2020):
Tuesday's trading range has been $3.41 (2.23%), that's below the last trading month's daily average range of $5.07. 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 AVB.
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 Bullish Short Candle showed up on June 25th, AVB actually lost -1.30% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 148.97 where further sell stops could get triggered. Further selling might move prices lower should the market test May's nearby low at 145.15.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for AvalonBay Communities. Out of 662 times, AVB closed higher 54.08% 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 59.06% with an average market move of 0.52%.