PEB breaks below key technical support level
Pebblebrook Hotel Trust of Beneficial Interest (PEB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PEB ended Wednesday at 13.99 losing $0.07 (-0.5%), slightly underperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PEB as at Sep 16, 2020):
Wednesday's trading range has been $0.81 (5.76%), that's above the last trading month's daily average range of $0.63. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PEB.
Even with a strong opening Pebblebrook Hotel closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on September 3rd, PEB actually gained 4.31% on the following trading day.
Prices broke below the key technical support level at 14.06 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 14.60 where further buy stops could get activated. Trading close to July's high at 15.17 we might see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Pebblebrook Hotel. Out of 201 times, PEB closed higher 50.75% 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 58.21% with an average market move of 0.92%.