EXR pushes through key technical resistance level
Extra Space Storage Inc (EXR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, EXR ended the month 11.88% higher at 103.34 after gaining $1.83 (1.8%) today, significantly outperforming the S&P 500 (0.77%). Today's close at 103.34 marks the highest recorded closing price since June 8th. Trading up to $1.24 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, EXR gained 4.22% on the following trading day. Closing above Thursday's high at 101.81, Extra Space confirmed its breakout through the previous session high after trading up to $1.63 above it intraday.
Daily Candlestick Chart (EXR as at Jul 31, 2020):
Friday's trading range has been $3.29 (3.24%), that's far above the last trading month's daily average range of $2.16. Weekly volatility is also higher, being above 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 White Candle.
Buyers managed to take out the key technical resistance level at 102.41 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 97.50.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test June's nearby high at 106.37.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Extra Space. Out of 306 times, EXR closed higher 57.52% 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 62.09% with an average market move of 1.02%.