FRT closes within prior day's range after lackluster session
Federal Realty Investment Trust (FRT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FRT finished the month -10.46% lower at 76.30 after losing $0.70 (-0.91%) today on high volume, strongly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FRT as at Jul 31, 2020):
Friday's trading range has been $2.23 (2.91%), that's below the last trading month's daily average range of $2.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FRT. Prices continued to consolidate within a tight trading range between 74.40 and 77.93 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 74.43 earlier during the day, the stock bounced off the key technical support level at 74.47 (S1). The failure to close below the support could increase that levels significance as support going forward. Federal Realty found buyers again today around 74.43 for the third trading day in a row after having found demand at 74.40 in the prior session and at 74.63 two days ago. The last time this happened on July 6th, FRT actually lost -4.41% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 77.93 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 74.40 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Federal Realty. Out of 133 times, FRT closed higher 56.39% 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 60.90% with an average market move of 0.05%.