EQR pops to highest close since September 21st
Equity Residential of Beneficial Interest (EQR) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
EQR finished the week 4.72% higher at 67.48 after edging higher $0.18 (0.27%) today on low volume, significantly outperforming the S&P 500 (-0.92%). Today's close at 67.48 marks the highest recorded closing price since September 21st. Trading up to $0.39 lower after the open, Equity Residential 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EQR as at Nov 09, 2018):
Friday's trading range has been $0.71 (1.05%), that's far below the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EQR.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on October 18th, EQR actually gained 0.71% on the following trading day.
Prices are trading close to the key technical support level at 66.76 (S1). Prices are trading close to the key technical resistance level at 68.31 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 67.74 where further buy stops could get triggered. With prices trading close to this year's high at 68.58, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Equity Residential. Out of 762 times, EQR closed higher 52.89% 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 53.67% with an average market move of 0.48%.