PLD closes above its opening price after recovering from early selling pressure
Prologis Inc. (PLD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PLD finished the month 12.95% higher at 105.42 after gaining $0.23 (0.22%) today on high volume, underperforming the S&P 500 (0.77%). Trading up to $1.81 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PLD as at Jul 31, 2020):
Friday's trading range has been $2.48 (2.36%), that's slightly above the last trading month's daily average range of $2.38. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PLD.
Two candlestick patterns are matching today's price action, the Hanging Man and the Last Engulfing Top Pattern which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 106.73 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 97.83. The last time this happened on June 4th, PLD actually gained 2.53% on the following trading day.
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 106.73 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Prologis. Out of 78 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 66.67% with an average market move of 0.28%.