ESS dominated by bulls lifting the market higher throughout the day
Essex Property Trust Inc. (ESS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ESS ended Thursday at 218.70 gaining $17.93 (8.93%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 212.86, Essex Property confirmed its breakout through the prior session high after trading up to $5.89 above it intraday.
Daily Candlestick Chart (ESS as at Mar 26, 2020):
Thursday's trading range has been $20.75 (10.27%), that's slightly above the last trading month's daily average range of $17.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ESS.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 214.88 (now S1), which is likely to act as support going forward. The last time this happened on March 4th, ESS actually lost -1.91% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Essex Property. Out of 168 times, ESS closed higher 55.95% 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 61.90% with an average market move of 0.53%.