FRT breaks below Thursday's low
Federal Realty Investment Trust (FRT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FRT ended the week 8.98% higher at 78.49 after losing $1.48 (-1.85%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 78.70, the stock confirmed its breakout through the previous session low after trading up to $1.56 below it intraday.
Daily Candlestick Chart (FRT as at May 22, 2020):
Friday's trading range has been $3.38 (4.22%), that's below the last trading month's daily average range of $4.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FRT.
Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on February 10th, FRT lost -3.10% on the following trading day.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 81.50 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Federal Realty. Out of 95 times, FRT closed higher 61.05% 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 nine trading days, showing a win rate of 56.84% with an average market move of 0.24%.