PLD breaks below Tuesday's low
Prologis Inc. (PLD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PLD finished Wednesday at 102.04 losing $0.69 (-0.67%), slightly underperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 102.13, the share confirmed its breakout through the previous session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (PLD as at Sep 16, 2020):
Wednesday's trading range has been $1.29 (1.25%), that's below the last trading month's daily average range of $2.10. 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.
Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on August 10th, PLD lost -3.10% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Unable to break through the key technical resistance level at 103.10 (R1), Prologis closed below it after spiking up to 103.26 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 102.13 in the previous session, the market found buyers again around the same price level today at 101.97.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 103.58 where further buy stops could get triggered. As prices are trading close to September's high at 104.66, upside momentum might speed up should PLD mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Prologis. Out of 86 times, PLD closed higher 60.47% 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 three trading days, showing a win rate of 56.98% with an average market move of -0.01%.