DLR closes lower for the 2nd day in a row


Digital Realty Trust Inc. (DLR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team

Highlights

DLR crashes, losing $2.83 (-2.32%) within a single day
DLR breaks below 20-day moving average for the first time since March 11th
DLR dominated by bears dragging the market lower throughout the day
DLR closes lower for the 2nd day in a row
DLR breaks below Monday's low

Overview

Moving lower for the 2nd day in a row, DLR finished Tuesday at 119.07 tanking $2.83 (-2.32%), notably underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over two months. The last time we've seen such an unusually strong single-day loss on January 9th, DLR actually gained 3.19% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 121.48, the share confirmed its breakout through the previous session low after trading up to $3.26 below it intraday.

Daily Candlestick Chart (DLR as at Apr 16, 2019):

Daily technical analysis candlestick chart for Digital Realty Trust Inc. (DLR) as at Apr 16, 2019

Tuesday's trading range has been $4.08 (3.35%), that's far above the last trading month's daily average range of $1.88. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DLR.

One bearish candlestick pattern matches today's price action, the Black Candle.

Prices are trading close to the key technical support level at 117.97 (S1). Digital Realty closed below the 20-day moving average at 120.31 for the first time since March 11th.

Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

As prices are trading close to April's low at 117.97, downside momentum might speed up should the market mark new lows for the month.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Digital Realty. Out of 296 times, DLR closed higher 60.81% 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 60.14% with an average market move of 0.83%.


Market Conditions for DLR as at Apr 16, 2019

Loading Market Conditions for DLR (Digital Realty Trust Inc.)...
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