PLD closes higher for the 5th day in a row
Prologis Inc. (PLD) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, PLD ended the week 5.0% higher at 67.57 after gaining $0.45 (0.67%) today, significantly outperforming the S&P 500 (-0.92%). Today's close at 67.57 marks the highest recorded closing price since September 28th. Trading up to $0.58 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 67.14, the share confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (PLD as at Nov 09, 2018):
Friday's trading range has been $1.07 (1.59%), that's below the last trading month's daily average range of $1.33. 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 PLD.
After trading down to 66.55 earlier during the day, Prologis bounced off the key technical support level at 66.73 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 67.66 (R1). After having been unable to move lower than 66.44 in the prior session, the stock found buyers again around the same price level today at 66.55. The last time this happened on October 22nd, PLD gained 1.23% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 64.83 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 68.20, upside momentum could speed up should PLD be able to break out to new highs for the year. Further buying might move prices higher should the market test October's nearby high at 67.99.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Prologis. Out of 475 times, PLD closed higher 57.26% 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 58.11% with an average market move of 0.85%.