OFC runs into sellers again around 24.72
Corporate Office Properties Trust (OFC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
OFC ended Wednesday at 24.38 losing $0.12 (-0.49%), slightly underperforming the S&P 500 (-0.46%). Trading $0.16 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 (OFC as at Sep 16, 2020):
Wednesday's trading range has been $0.43 (1.75%), that's far below the last trading month's daily average range of $0.65. 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 OFC.
One bullish candlestick pattern matches today's price action, the Tweezer Top. The last time a Tweezer Top showed up on July 23rd, OFC actually lost -1.99% on the following trading day.
The share closed back below the 20-day moving average at 24.43. After having been unable to move above 24.72 in the prior session, Corporate Office ran into sellers again around the same price level today, missing to move higher than 24.72.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Corporate Office. Out of 154 times, OFC closed higher 53.25% 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 63.64% with an average market move of 0.84%.