EQC breaks above 100-day moving average for the first time since March 4th
Equity Commonwealth of Beneficial Interest (EQC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EQC finished Thursday at 32.22 gaining $1.14 (3.67%), notably underperforming the S&P 500 (6.24%). Today's close at 32.22 marks the highest recorded closing price since March 4th. Closing above Wednesday's high at 32.11, the share confirmed its breakout through the prior session high after trading up to $0.58 above it intraday.
Daily Candlestick Chart (EQC as at Mar 26, 2020):
Thursday's trading range has been $1.58 (5.04%), that's slightly below the last trading month's daily average range of $1.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EQC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, EQC actually lost -3.97% on the following trading day.
The market managed to close above the 100-day moving average at 32.13 for the first time since March 4th. After spiking up to 32.69 during the day, the stock found resistance at the 200-day moving average at 32.64.
Equity Commonwealth shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 33.51, upside momentum might accelerate should EQC be able to break out to new highs for the year. As prices are trading close to March's high at 32.91, upside momentum could speed up should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Equity Commonwealth. Out of 23 times, EQC closed higher 52.17% 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 four trading days, showing a win rate of 65.22% with an average market move of 0.16%.