DLR closes higher for the 2nd day in a row
Digital Realty Trust Inc. (DLR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DLR ended Wednesday at 150.43 gaining $3.15 (2.14%) on high volume, notably outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $3.61 (2.41%), that's slightly below the last trading month's daily average range of $3.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DLR.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 25th, DLR actually lost -0.51% on the following trading day.
After spiking up to 152.98 during the day, the stock found resistance at the 50-day moving average at 151.19.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 155.46, upside momentum could accelerate should Digital Realty mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Digital Realty. Out of 30 times, DLR closed higher 63.33% 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 2.41%.