ESS closes lower for the 2nd day in a row
Essex Property Trust Inc. (ESS) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ESS finished the week 0.95% higher at 303.95 after losing $2.02 (-0.66%) today, significantly underperforming the S&P 500 (0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ESS as at Jul 12, 2019):
Friday's trading range has been $3.58 (1.17%), that's below the last trading month's daily average range of $4.52. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ESS. Prices continued to consolidate within a tight trading range between 303.19 and 308.73 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on May 9th, ESS gained 1.34% on the following trading day.
Prices broke below the key technical support level at 305.23 (now R1), which is likely to act as resistance going forward. The market found buyers again today around 303.19 for the third trading day in a row after having found demand at 303.92 in the previous session and at 303.70 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Essex Property. Out of 105 times, ESS closed higher 56.19% 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 67.62% with an average market move of 1.15%.