EQR soars, gaining $1.24 (1.46%) within a single day on low volume
Equity Residential of Beneficial Interest (EQR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EQR ended the week 2.68% higher at 86.46 after surging $1.24 (1.46%) today on low volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on January 30th, EQR actually lost -1.06% on the following trading day. Today's close at 86.46 marks the highest recorded closing price since November 20, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (EQR as at Feb 14, 2020):
Friday's trading range has been $1.01 (1.18%), that's slightly below the last trading month's daily average range of $1.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EQR.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 86.47 (R1).
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 83.62 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 87.53, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Equity Residential. Out of 88 times, EQR closed higher 56.82% 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 three trading days, showing a win rate of 62.50% with an average market move of 0.08%.