MAA closes higher for the 6th day in a row
Mid-America Apartment Communities Inc. (MAA) Technical Analysis Report for May 28, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, MAA finished Thursday at 117.66 gaining $0.78 (0.67%) on low volume, outperforming the S&P 500 (-0.21%). Today's close at 117.66 marks the highest recorded closing price since March 13th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MAA as at May 28, 2020):
Thursday's trading range has been $3.49 (2.95%), that's slightly below the last trading month's daily average range of $3.63. 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 MAA.
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. The last time a Hanging Man showed up on May 22nd, MAA actually gained 2.21% on the following trading day.
Prices are trading close to the key technical resistance level at 119.49 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 119.85 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 114.04 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Mid-America Apartment. Out of 670 times, MAA closed higher 57.76% 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 61.34% with an average market move of 0.79%.