MAA finds buyers around 115.51 for the third day in a row
Mid-America Apartment Communities Inc. (MAA) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
MAA ended Wednesday at 116.26 losing $0.66 (-0.56%) on low volume, significantly underperforming the S&P 500 (0.64%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MAA as at Aug 05, 2020):
Wednesday's trading range has been $2.11 (1.8%), that's below the last trading month's daily average range of $2.78. 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 slightly lower than usual for MAA. Prices continued to consolidate within a tight trading range between 115.00 and 118.56 where it has been caught now for the last three trading days.
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. Despite a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on July 6th, MAA lost -1.26% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 114.33 (S1). The stock found buyers again today around 115.51 for the third trading day in a row after having found demand at 115.00 in the previous session and at 115.40 two days ago.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 119.20 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 115.00 where further sell stops might get triggered. Further buying could move prices higher should the market test July's close-by high at 120.08.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Mid-America Apartment. Out of 129 times, MAA closed higher 62.02% 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 63.57% with an average market move of 0.72%.