AVB breaks above 20-day moving average for the first time since June 17th
AvalonBay Communities Inc. (AVB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AVB ended the month -0.98% lower at 153.12 after gaining $1.92 (1.27%) today on high volume, slightly outperforming the S&P 500 (0.77%). Trading up to $4.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 151.20, the share confirmed its breakout through the prior session high after trading up to $2.04 above it intraday.
Daily Candlestick Chart (AVB as at Jul 31, 2020):
Friday's trading range has been $6.27 (4.15%), that's far above the last trading month's daily average range of $4.13. 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 AVB.
AvalonBay Communities managed to close above the 20-day moving average at 151.78 for the first time since June 17th. When this moving average was crossed above the last time on June 16th, AVB actually lost -2.74% on the following trading day. Prices are trading close to the key technical resistance level at 155.33 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven 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 AvalonBay Communities. Out of 529 times, AVB closed higher 59.17% 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 59.36% with an average market move of 0.40%.