EXR finds buyers around 85.88 for the third day in a row
Extra Space Storage Inc (EXR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EXR finished the week 5.4% higher at 86.23 after losing $0.70 (-0.81%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.82 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 86.30, the share confirmed its breakout through the previous session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (EXR as at May 22, 2020):
Friday's trading range has been $1.78 (2.05%), that's far below the last trading month's daily average range of $3.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EXR.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices broke below the key technical support level at 86.65 (now R1), which is likely to act as resistance going forward. The last time this happened on May 15th, EXR actually gained 6.50% on the following trading day. The market found buyers again today around 85.88 for the third trading day in a row after having found demand at 86.30 in the prior session and at 86.14 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 88.62 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Extra Space. Out of 288 times, EXR closed higher 56.94% 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 58.68% with an average market move of 0.79%.