DRE finds buyers around 34.47 for the third day in a row
Duke Realty Corporation (DRE) Technical Analysis Report for Nov 11, 2019 | by Techniquant Editorial Team
DRE ended Monday at 34.76 gaining $0.17 (0.49%), outperforming the S&P 500 (-0.2%). Trading up to $0.20 lower after the open, the market 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.
Daily Candlestick Chart (DRE as at Nov 11, 2019):
Monday's trading range has been $0.41 (1.18%), that's slightly below the last trading month's daily average range of $0.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DRE. Prices continued to consolidate within a tight trading range between 34.47 and 34.89 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on October 16th, DRE gained 1.43% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Morning Star which are both known as bullish patterns.
After trading down to 34.47 earlier during the day, the stock bounced off the key technical support level at 34.63 (S1). The failure to close below the support might increase that levels importance as support going forward. Duke Realty found buyers again today around 34.47 for the third trading day in a row after having found demand at 34.49 in the prior session and at 34.47 two days ago.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 34.47 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Morning Star" stand out. Its common bullish interpretation has been confirmed for Duke Realty. Out of 2 times, DRE closed higher 100.00% 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 seven trading days, showing a win rate of 50.00% with an average market move of 0.88%.