ESS closes within previous day's range
Essex Property Trust Inc. (ESS) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
ESS ended Thursday at 237.05 losing $2.32 (-0.97%) on low volume, significantly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ESS as at Jul 02, 2020):
Thursday's trading range has been $8.94 (3.68%), that's slightly above the last trading month's daily average range of $8.27. 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 slightly higher than usual for ESS.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 26th, ESS actually gained 0.73% on the following trading day.
After spiking up to 243.54 during the day, the share found resistance at the 20-day moving average at 242.93.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Essex Property. Out of 51 times, ESS closed higher 64.71% 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 70.59% with an average market move of 1.61%.