PLD dominated by bulls lifting the market higher throughout the day
Prologis Inc. (PLD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PLD finished the week 5.13% higher at 87.55 after gaining $1.15 (1.33%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 87.47, Prologis confirmed its breakout through the previous session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (PLD as at May 22, 2020):
Friday's trading range has been $1.73 (2.01%), that's below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PLD. Prices continued to consolidate within a tight trading range between 84.53 and 87.74 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The stock managed to close back above the 200-day moving average at 86.87. The share found buyers again today around 85.93 for the third trading day in a row after having found demand at 85.95 in the prior session and at 85.75 two days ago. The last time this happened on March 19th, PLD actually lost -1.71% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 87.74 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 84.53 where further sell stops could get triggered. As prices are trading close to May's high at 90.30, upside momentum might speed up should PLD mark new highs for the month.
Among the 17 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Prologis. Out of 39 times, PLD closed higher 58.97% 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 69.23% with an average market move of 1.36%.