DLR closes lower for the 3rd day in a row
Digital Realty Trust Inc (DLR) Technical Analysis Report for Oct 12, 2018
Moving lower for the 3rd day in a row, DLR finished the week -2.15% lower at 107.43 after losing $0.07 (-0.07%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 107.43 marks the lowest recorded closing price since June 21st. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DLR as at Oct 12, 2018):
Friday's trading range has been $1.61 (1.49%), that's slightly below the last trading month's daily average range of $1.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DLR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 108.43 (R1), the share closed below it after spiking up to 108.49 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 25th, DLR lost -1.79% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 106.34 where further sell stops could get triggered.
Among the four 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 Digital Realty. Out of 649 times, DLR closed higher 56.86% 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 59.78% with an average market move of 1.18%.