ESS closes higher for the 2nd day in a row
Essex Property Trust Inc. (ESS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ESS ended the month -5.6% lower at 229.17 after gaining $2.74 (1.21%) today, slightly underperforming the S&P 500 (1.54%).
Daily Candlestick Chart (ESS as at Jun 30, 2020):
Tuesday's trading range has been $4.26 (1.88%), that's far below the last trading month's daily average range of $7.93. 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 ESS. Prices continued to consolidate within a tight trading range between 221.99 and 231.30 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 224.20 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 221.99 where further sell stops could get activated. Further selling might move prices lower should the market test May's nearby low at 218.53.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Essex Property. Out of 667 times, ESS closed higher 51.57% 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 59.07% with an average market move of 0.56%.