PSA finds buyers around 189.09 for the third day in a row
Public Storage (PSA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PSA ended the month -5.35% lower at 191.89 after gaining $0.79 (0.41%) today, notably underperforming the S&P 500 (1.54%). Trading up to $2.20 lower after the open, Public Storage managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 191.73, the market confirmed its breakout through the previous session high after trading up to $1.87 above it intraday.
Daily Candlestick Chart (PSA as at Jun 30, 2020):
Tuesday's trading range has been $4.51 (2.36%), that's below the last trading month's daily average range of $5.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PSA. Prices continued to consolidate within a tight trading range between 186.36 and 193.60 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 9th, PSA actually lost -2.79% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
The stock managed to close back above the 50-day moving average at 191.55 for the first time since June 18th. Unable to break through the key technical resistance level at 192.27 (R1), the share closed below it after spiking up to 193.60 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. PSA found buyers again today around 189.09 for the third trading day in a row after having found demand at 189.13 in the prior session and at 188.63 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 186.36 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Public Storage. Out of 39 times, PSA closed lower 53.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 64.10% with an average market move of -0.46%.