ESS runs into sellers again around 221.92
Essex Property Trust Inc. (ESS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ESS finished the month -3.68% lower at 220.74 after edging higher $0.12 (0.05%) today on high volume, underperforming the S&P 500 (0.77%). Trading up to $4.38 lower after the open, Essex Property managed to reverse during the session as bulls took control ending the day above its opening price. 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 31, 2020):
Friday's trading range has been $5.92 (2.69%), that's slightly above the last trading month's daily average range of $5.46. 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 lower than usual for ESS.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on June 4th, ESS actually gained 4.81% on the following trading day.
Buyers managed to take out the key technical resistance level at 220.62 (now S1), which is likely to act as support going forward. After having been unable to move above 221.23 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 221.92.
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 Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Essex Property. Out of 610 times, ESS closed higher 54.59% 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 62.13% with an average market move of 0.62%.