BDN stuck within tight trading range
Brandywine Realty Trust (BDN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
BDN ended Thursday at 10.84 edging higher $0.10 (0.93%), slightly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BDN as at Jul 02, 2020):
Thursday's trading range has been $0.45 (4.1%), that's below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BDN. Prices continued to consolidate within a tight trading range between 10.60 and 11.31 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 10.60 (S1). After having been unable to move lower than 10.60 in the previous session, the share found buyers again around the same price level today at 10.65. The last time this happened on Tuesday, BDN actually lost -1.38% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 11.42 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 10.60 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Brandywine Realty. Out of 604 times, BDN closed higher 51.66% 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 eight trading days, showing a win rate of 53.64% with an average market move of 0.10%.