FRT closes above its opening price after recovering from early selling pressure
Federal Realty Investment Trust (FRT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FRT ended the month 6.63% higher at 85.21 after edging higher $0.45 (0.53%) today, notably underperforming the S&P 500 (1.54%). Trading up to $0.80 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FRT as at Jun 30, 2020):
Tuesday's trading range has been $2.36 (2.77%), that's far below the last trading month's daily average range of $3.90. 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 FRT.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 85.85 (R1), the market closed below it after spiking up to 86.61 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 23rd, FRT lost -2.89% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 81.55 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Federal Realty. Out of 693 times, FRT closed higher 53.82% 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 59.45% with an average market move of 0.31%.