PSA pushes through Friday's high
Public Storage (PSA) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, PSA ended Monday at 204.77 gaining $2.03 (1.0%), outperforming the S&P 500 (0.38%). Today's close at 204.77 marks the highest recorded closing price since April 14th. Closing above Friday's high at 204.13, the share confirmed its breakout through the previous session high after trading up to $2.11 above it intraday.
Daily Candlestick Chart (PSA as at Jun 01, 2020):
Monday's trading range has been $5.56 (2.75%), that's slightly above the last trading month's daily average range of $5.21. 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 PSA.
The stock managed to close above the 100-day moving average at 204.30 for the first time since March 11th. When this moving average was crossed above the last time on March 4th, PSA gained 1.32% on the following trading day.
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 although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 186.28.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to April's high at 212.30 we might see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Public Storage. Out of 64 times, PSA closed higher 51.56% 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 57.81% with an average market move of 0.56%.