FRT dominated by bulls lifting the market higher throughout the day
Federal Realty Investment Trust (FRT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FRT finished the week -0.62% lower at 127.23 after surging $2.38 (1.91%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over five months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 125.50, Federal Realty confirmed its breakout through the prior session high after trading up to $1.73 above it intraday.
Daily Candlestick Chart (FRT as at Feb 14, 2020):
Friday's trading range has been $2.26 (1.81%), that's slightly above the last trading month's daily average range of $1.90. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FRT.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on October 30, 2019, FRT actually lost -3.65% on the following trading day.
Buyers managed to take out the key technical resistance level at 126.72 (now S1), which is likely to act as support going forward.
Although 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 accelerate should prices move above the nearby swing high at 129.12 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Federal Realty. Out of 22 times, FRT closed lower 59.09% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.53%.