PSA breaks back above 20-day moving average
Public Storage (PSA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PSA finished the week 5.97% higher at 186.47 after gaining $3.70 (2.02%) today on low volume, notably 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 184.32, Public Storage confirmed its breakout through the previous session high after trading up to $2.24 above it intraday.
Daily Candlestick Chart (PSA as at May 22, 2020):
Friday's trading range has been $3.56 (1.93%), that's below the last trading month's daily average range of $5.80. 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 PSA.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on April 9th, PSA actually lost -3.43% on the following trading day.
The share managed to close back above the 20-day moving average at 183.40.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 181.33 where further sell stops might get triggered. As prices are trading close to May's high at 191.65, upside momentum could accelerate should the stock mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Public Storage. Out of 79 times, PSA closed higher 55.70% 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 62.03% with an average market move of 0.75%.