ESS closes within prior day's range after lackluster session
Essex Property Trust Inc. (ESS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ESS ended Wednesday at 219.56 gaining $3.17 (1.46%) on low volume, notably outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $4.76 (2.18%), that's below the last trading month's daily average range of $5.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ESS.
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. After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.
The stock managed to close back above the 50-day moving average at 218.96. When this moving average was crossed above the last time on Monday, ESS actually lost -2.70% on the following trading day. Prices are trading close to the key technical resistance level at 222.52 (R1).
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 225.40 where further buy stops might get triggered. As prices are trading close to September's high at 227.24, upside momentum could accelerate should Essex Property mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Essex Property. Out of 52 times, ESS closed higher 51.92% 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 65.38% with an average market move of 1.28%.