PSA dominated by bulls lifting the market higher throughout the day
Public Storage (PSA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PSA ended Thursday at 187.77 gaining $11.23 (6.36%), slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 187.08, the stock confirmed its breakout through the prior session high after trading up to $2.26 above it intraday.
Daily Candlestick Chart (PSA as at Mar 26, 2020):
Thursday's trading range has been $15.34 (8.69%), that's above the last trading month's daily average range of $12.55. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher 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 186.80 (now S1), which is likely to act as support going forward. The last time this happened on March 13th, PSA actually lost -11.53% on the following trading day. After having been unable to move above 187.08 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 189.34.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine 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 171 times, PSA closed higher 54.97% 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 59.06% with an average market move of 0.41%.