DLR surges, gaining $4.97 (3.93%) within a single day on high volume
Digital Realty Trust Inc. (DLR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
DLR ended the week 6.67% higher at 131.50 after surging $4.97 (3.93%) today on high volume, notably outperforming the S&P 500 (0.18%) following Thursday's earnings report. This is the biggest single-day gain in over two years. Today's close at 131.50 marks the highest recorded closing price since October 28, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 127.70, the share confirmed its breakout through the previous session high after trading up to $4.13 above it intraday.
Daily Candlestick Chart (DLR as at Feb 14, 2020):
DLR reported earnings of $1.5 per share after Thursday's market close. With analysts having expected an EPS of $1.58, Digital Realty Trust Inc. missed market expectations by -5.1%. The company's last earnings report was released on Oct. 29, 2019, when Digital Realty Trust Inc. reported earnings of $0.24 per share missing market expectations by -85.3%.
Friday's trading range has been $6.63 (5.27%), that's far above the last trading month's daily average range of $2.26. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DLR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, 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.
After trading down to 125.20 earlier during the day, the stock bounced off the key technical support level at 125.48 (S2). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on December 19, 2019, DLR actually lost -0.82% on the following trading day.
Crossing above the upper Bollinger Band for the first time since January 24th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 126.15 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Digital Realty. Out of 16 times, DLR closed higher 68.75% 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 62.50% with an average market move of 0.72%.