EQR runs into sellers again around 57.38
Equity Residential of Beneficial Interest (EQR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EQR finished Wednesday at 56.87 gaining $0.54 (0.96%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EQR as at Sep 16, 2020):
Wednesday's trading range has been $0.96 (1.7%), that's far below the last trading month's daily average range of $1.48. 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.
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.
Buyers managed to take out the key technical resistance level at 56.58 (now S1), which is likely to act as support going forward. After having been unable to move above 57.41 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 57.38. The last time this happened on September 9th, EQR lost -1.81% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 57.41 where further buy stops might get triggered. As prices are trading close to September's high at 59.10, upside momentum could accelerate should the share mark new highs for the month.
Among the three 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 281 times, EQR closed higher 56.23% 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 55.16% with an average market move of 0.24%.