FRT pushes through key technical resistance level
Federal Realty Investment Trust (FRT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FRT finished Wednesday at 83.58 surging $2.42 (2.98%), notably outperforming the S&P 500 (-0.46%). Today's close at 83.58 marks the highest recorded closing price since July 6th. Closing above Tuesday's high at 82.21, the stock confirmed its breakout through the previous session high after trading up to $1.75 above it intraday.
Daily Candlestick Chart (FRT as at Sep 16, 2020):
Wednesday's trading range has been $3.31 (4.06%), that's far above the last trading month's daily average range of $2.41. Weekly volatility is also higher, being above 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 White Candle.
Buyers managed to take out the key technical resistance level at 81.55 (now S1), which is likely to act as support going forward. After having been unable to move lower than 80.36 in the prior session, the share found buyers again around the same price level today at 80.65. The last time this happened on September 4th, FRT actually lost -2.18% on the following trading day.
Crossing above the upper Bollinger Band for the first time since August 12th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 80.44 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 84.11 where further buy stops could get activated. As prices are trading close to September's high at 84.11, upside momentum might speed up should the market mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Federal Realty. Out of 566 times, FRT closed higher 53.18% 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 57.77% with an average market move of 0.15%.