ESS closes within previous day's range after lackluster session
Essex Property Trust Inc. (ESS) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
ESS finished Tuesday at 304.29 edging lower $0.58 (-0.19%), but still slightly outperforming the S&P 500 (-0.34%). 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 16, 2019):
Tuesday's trading range has been $2.14 (0.7%), that's far below the last trading month's daily average range of $4.57. 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 302.66 and 308.73 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on July 10th, ESS lost -0.72% on the following trading day.
Prices are trading close to the key technical support level at 302.05 (S1). Essex Property found buyers again today around 302.70 for the third trading day in a row after having found demand at 302.66 in the prior session and at 303.19 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 308.73 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 302.66 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Essex Property. Out of 81 times, ESS closed higher 53.09% 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 62.96% with an average market move of 0.81%.