MAA closes above its opening price after recovering from early selling pressure
Mid-America Apartment Communities Inc. (MAA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MAA ended the week 3.06% higher at 145.51 after gaining $1.37 (0.95%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 145.51 marks the highest recorded closing price ever. Trading up to $0.70 lower after the open, Mid-America Apartment managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, MAA actually lost -0.28% on the following trading day. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MAA as at Feb 14, 2020):
Friday's trading range has been $1.59 (1.1%), that's slightly below the last trading month's daily average range of $1.69. 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 strongly higher than usual for MAA.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 138.84.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Mid-America Apartment. Out of 179 times, MAA closed higher 53.63% 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 64.25% with an average market move of 0.70%.