HR runs into sellers again around 30.09
Healthcare Realty Trust Incorporated (HR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HR finished Wednesday at 29.48 losing $0.13 (-0.44%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.23 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 29.56, the stock confirmed its breakout through the previous session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (HR as at Sep 16, 2020):
Wednesday's trading range has been $0.66 (2.21%), that's slightly below the last trading month's daily average range of $0.68. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HR.
Notwithstanding a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on September 11th, HR actually gained 2.35% on the following trading day.
Prices are trading close to the key technical resistance level at 29.69 (R1). After having been unable to move above 30.09 in the previous session, Healthcare Realty ran into sellers again around the same price level today, failing to move higher than 30.09.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 30.47 we might see further upside momentum if potential buy stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Healthcare Realty. Out of 97 times, HR closed higher 61.86% 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 64.95% with an average market move of 0.90%.