FRT finds buyers at key support level
Federal Realty Investment Trust (FRT) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FRT ended the month -4.04% lower at 79.91 after edging lower $0.53 (-0.66%) today on high volume, strongly underperforming the S&P 500 (0.48%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FRT as at May 29, 2020):
Friday's trading range has been $5.78 (6.82%), that's far above the last trading month's daily average range of $4.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FRT.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 78.92 earlier during the day, the market bounced off the key technical support level at 79.86 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on May 14th, FRT gained 2.86% on the following trading day. After having been unable to move above 85.03 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 84.70.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 77.14 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Federal Realty. Out of 694 times, FRT closed higher 54.03% 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 59.94% with an average market move of 0.31%.