DRE finds buyers at key support level
Duke Realty Corporation (DRE) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
DRE ended the week -2.07% lower at 33.55 after gaining $0.22 (0.66%) today on high volume, slightly underperforming the S&P 500 (1.09%). Trading up to $0.16 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DRE as at Oct 11, 2019):
Friday's trading range has been $0.39 (1.17%), that's below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DRE.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Tweezer Bottom which are both known as bullish patterns. The last time a Tweezer Bottom showed up on March 8th, DRE gained 1.97% on the following trading day.
After trading down to 33.29 earlier during the day, the market bounced off the key technical support level at 33.45 (S1). The failure to close below the support might increase that levels importance as support going forward. After spiking up to 33.68 during the day, Duke Realty found resistance at the 20-day moving average at 33.65. After having been unable to move lower than 33.29 in the prior session, the share found buyers again around the same price level today at 33.29.
Although DRE is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. Its common bullish interpretation has been confirmed for Duke Realty. Out of 28 times, DRE closed higher 64.29% 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 71.43% with an average market move of 0.97%.