COR unable to break through key resistance level
CoreSite Realty Corporation (COR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COR ended Thursday at 105.35 gaining $3.16 (3.09%), significantly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (COR as at Mar 26, 2020):
Thursday's trading range has been $15.07 (15.82%), that's far above the last trading month's daily average range of $7.82. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COR.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The share managed to close above the 20-day moving average at 104.88 for the first time since March 4th. Unable to break through the key technical resistance level at 107.92 (R1), CoreSite Realty closed below it after spiking up to 110.32 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 94.00 in the prior session, the market found buyers again around the same price level today at 95.25. The last time this happened on Tuesday, COR gained 7.08% on the following trading day.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CoreSite Realty. Out of 76 times, COR closed higher 59.21% 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 73.68% with an average market move of 2.25%.