MAA closes above its opening price after recovering from early selling pressure
Mid-America Apartment Communities Inc. (MAA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MAA ended the week 6.93% higher at 114.28 after edging higher $0.46 (0.4%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.44 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, MAA gained 7.01% on the following trading day. 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 (MAA as at May 22, 2020):
Friday's trading range has been $1.90 (1.67%), that's far below the last trading month's daily average range of $3.60. 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 MAA. Prices continued to consolidate within a tight trading range between 109.96 and 115.57 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After having been unable to move above 114.46 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 114.54.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 115.57 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 109.96 where further sell stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 119.49.
Among the 10 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 Mid-America Apartment. Out of 669 times, MAA closed higher 57.70% 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 61.29% with an average market move of 0.79%.