EQR closes higher for the 3rd day in a row
Equity Residential of Beneficial Interest (EQR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EQR finished Thursday at 59.23 gaining $4.66 (8.54%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 57.88, the market confirmed its breakout through the previous session high after trading up to $1.50 above it intraday.
Daily Candlestick Chart (EQR as at Mar 26, 2020):
Thursday's trading range has been $6.04 (11.07%), that's above the last trading month's daily average range of $4.76. 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 strongly higher than usual for EQR.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, EQR actually lost -8.41% on the following trading day.
Buyers managed to take out the key technical resistance level at 58.61 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Equity Residential. Out of 289 times, EQR closed higher 56.40% 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 56.40% with an average market move of 0.27%.