EQC finds buyers around 32.67 for the third day in a row
Equity Commonwealth of Beneficial Interest (EQC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EQC finished the week 3.17% higher at 32.84 after losing $0.08 (-0.24%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EQC as at May 22, 2020):
Friday's trading range has been $0.36 (1.09%), that's far below the last trading month's daily average range of $0.73. 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 EQC. Prices continued to consolidate within a tight trading range between 32.35 and 33.32 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 32.67 earlier during the day, Equity Commonwealth bounced off the key technical support level at 32.69 (S1). The failure to close below the support could increase that levels importance as support going forward. The stock found buyers again today around 32.67 for the third trading day in a row after having found demand at 32.61 in the previous session and at 32.60 two days ago.
Although 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.
Buying could speed up should prices move above the close-by swing high at 33.10 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Equity Commonwealth. Out of 478 times, EQC closed higher 56.28% 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 58.16% with an average market move of 0.43%.