DLR closes below its opening price unable to hold early session gains
Digital Realty Trust Inc. (DLR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, DLR finished the month 12.97% higher at 160.54 after gaining $1.81 (1.14%) today on high volume, slightly outperforming the S&P 500 (0.77%) following Thursday's earnings report. Today's close at 160.54 marks the highest recorded closing price ever. Trading $3.36 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DLR as at Jul 31, 2020):
DLR reported earnings of $0.2 per share after Thursday's market close. With analysts having expected an EPS of $1.48, Digital Realty Trust Inc. missed market expectations by -86.5%. The company's last earnings report was released on May 7, 2020, when Digital Realty Trust Inc. reported earnings of $1.54 per share hitting market expectations.
Friday's trading range has been $6.84 (4.22%), that's far above the last trading month's daily average range of $3.87. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DLR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 24th, DLR actually gained 2.18% on the following trading day.
Prices are trading close to the key technical support level at 158.36 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 148.07.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Digital Realty. Out of 10 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 70.00% with an average market move of 1.56%.