EGP closes above its opening price after recovering from early selling pressure
EastGroup Properties Inc. (EGP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EGP finished Thursday at 103.55 gaining $6.82 (7.05%), outperforming the S&P 500 (6.24%). Trading up to $4.42 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 101.41, the share confirmed its breakout through the prior session high after trading up to $3.03 above it intraday.
Daily Candlestick Chart (EGP as at Mar 26, 2020):
Thursday's trading range has been $10.96 (11.2%), that's above the last trading month's daily average range of $8.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EGP.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 100.74 (now S1), which is likely to act as support going forward. The last time this happened on March 19th, EGP actually lost -11.07% on the following trading day. Prices are trading close to the key technical resistance level at 111.39 (R1). After having been unable to move lower than 93.98 in the previous session, EastGroup Properties found buyers again around the same price level today at 93.48.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 108.50 where further buy 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 "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for EastGroup Properties. Out of 766 times, EGP closed higher 55.09% 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 60.18% with an average market move of 0.60%.