CUBE closes below its opening price unable to hold early session gains
CubeSmart (CUBE) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CUBE ended the week -1.85% lower at 34.54 after losing $0.19 (-0.55%) today, strongly underperforming the S&P 500 (1.09%). Trading $0.17 higher after the open, CubeSmart was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, CUBE lost -0.74% on the following trading day. Closing below Thursday's low at 34.66, the stock confirmed its breakout through the previous session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (CUBE as at Oct 11, 2019):
Friday's trading range has been $0.48 (1.38%), that's slightly below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CUBE.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 100-day moving average at 34.60 for the first time since October 1st. After having been unable to move above 35.02 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 34.98.
Although CUBE is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Trading close to August's low at 33.83 we could see further downside momentum if potential sell stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CubeSmart. Out of 74 times, CUBE closed higher 66.22% 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 70.27% with an average market move of 2.20%.