PSA unable to break through key resistance level
Public Storage (PSA) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PSA finished Thursday at 199.36 gaining $0.20 (0.1%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 199.36 marks the highest recorded closing price since June 10th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PSA as at Jul 02, 2020):
Thursday's trading range has been $4.50 (2.24%), that's below the last trading month's daily average range of $5.87. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PSA.
The share managed to close above the 100-day moving average at 198.90 for the first time since June 10th. Unable to break through the key technical resistance level at 201.19 (R1), the market closed below it after spiking up to 202.02 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Tuesday, PSA actually gained 3.79% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three 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 66 times, PSA closed higher 53.03% 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 56.06% with an average market move of 0.39%.