PSA climbs to highest close since October 29, 2019
Public Storage (PSA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PSA finished the week 3.37% higher at 232.82 after surging $4.26 (1.86%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over six months. The last time we've seen such an unusually strong single-day gain on August 7, 2019, PSA gained 0.70% on the following trading day. Today's close at 232.82 marks the highest recorded closing price since October 29, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 229.56, the stock confirmed its breakout through the prior session high after trading up to $3.44 above it intraday.
Daily Candlestick Chart (PSA as at Feb 14, 2020):
Friday's trading range has been $4.35 (1.9%), that's far above the last trading month's daily average range of $2.73. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PSA.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 232.60 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 224.51.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Public Storage. Out of 175 times, PSA closed higher 55.43% 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 61.14% with an average market move of 0.59%.