ESRT pushes through Monday's high
Empire State Realty Trust Inc. Class A (ESRT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ESRT finished the month 5.58% higher at 7.00 after gaining $0.12 (1.74%) today on high volume, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 6.88, the share confirmed its breakout through the prior session high after trading up to $0.13 above it intraday.
Daily Candlestick Chart (ESRT as at Jun 30, 2020):
Tuesday's trading range has been $0.24 (3.51%), that's far below the last trading month's daily average range of $0.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ESRT.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 6.99 (now S1), which is likely to act as support going forward. The last time this happened on June 22nd, ESRT actually lost -2.14% on the following trading day.
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 close-by swing high at 7.11 where further buy stops could get activated.
Among the 10 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for Empire State. Out of 176 times, ESRT closed lower 52.27% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.11% with an average market move of -0.69%.