DLR rallies 3.87% closing $5.06 higher
Digital Realty Trust Inc. (DLR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DLR ended the week 3.85% higher at 135.81 after surging $5.06 (3.87%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 132.01, the market confirmed its breakout through the previous session high after trading up to $3.85 above it intraday.
Daily Candlestick Chart (DLR as at May 22, 2020):
Friday's trading range has been $5.32 (4.07%), that's slightly above the last trading month's daily average range of $5.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DLR. Prices continued to consolidate within a tight trading range between 129.81 and 135.98 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 17th, DLR lost -3.67% on the following trading day.
The share managed to close back above the 100-day moving average at 132.64. The stock was bought again around 130.54 after having seen lows at 129.82, 129.81 and 130.25 in the last three trading sessions. Obviously there is something going on at that level.
Although Digital Realty is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test April's nearby low at 127.12.
Among the 11 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 60 times, DLR closed higher 60.00% 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 65.00% with an average market move of 0.67%.