EQR closes lower for the 2nd day in a row
Equity Residential of Beneficial Interest (EQR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EQR finished the week 0.47% higher at 57.40 after losing $0.53 (-0.91%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 57.89, the stock confirmed its breakout through the prior session low after trading up to $1.10 below it intraday.
Daily Candlestick Chart (EQR as at May 22, 2020):
Friday's trading range has been $1.47 (2.53%), that's far below the last trading month's daily average range of $2.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EQR.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 59.60 where further buy stops could get activated. Further selling might move prices lower should the market test April's close-by low at 52.79.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Equity Residential. Out of 299 times, EQR closed higher 54.85% of the time on the next trading day after the market condition occurred.