MAA climbs to highest close since June 16th
Mid-America Apartment Communities Inc. (MAA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MAA ended the month 3.94% higher at 119.19 after gaining $1.67 (1.42%) today on high volume, outperforming the S&P 500 (0.77%). Today's close at 119.19 marks the highest recorded closing price since June 16th. Trading up to $2.28 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 Wednesday, MAA gained 3.16% on the following trading day. Closing above Thursday's high at 118.76, the share confirmed its breakout through the previous session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (MAA as at Jul 31, 2020):
Friday's trading range has been $4.45 (3.8%), that's far above the last trading month's daily average range of $2.78. 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 MAA.
Prices are trading close to the key technical resistance level at 119.85 (R1). After having been unable to move above 118.76 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 119.20.
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 although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 113.08.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to July's high at 120.08, upside momentum might speed up should the stock mark new highs for the month.
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 54.19% 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 62.01% with an average market move of 0.42%.