DLR dominated by bulls lifting the market higher throughout the day
Digital Realty Trust Inc. (DLR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DLR finished Thursday at 134.13 surging $12.70 (10.46%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 128.99, the stock confirmed its breakout through the prior session high after trading up to $5.87 above it intraday.
Daily Candlestick Chart (DLR as at Mar 26, 2020):
Thursday's trading range has been $13.65 (11.21%), that's above the last trading month's daily average range of $9.94. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DLR.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 200-day moving average at 123.54 for the first time since March 19th. When this moving average was crossed above the last time on March 10th, DLR gained 1.90% on the following trading day. Prices are trading close to the key technical resistance level at 138.46 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 139.75 where further buy stops could get triggered. With prices trading close to this year's high at 143.61, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Digital Realty. Out of 62 times, DLR closed higher 61.29% 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 64.52% with an average market move of 0.57%.