PSA closes above its opening price after recovering from early selling pressure
Public Storage (PSA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, PSA ended the month 4.16% higher at 199.88 after gaining $2.17 (1.1%) today on high volume, slightly outperforming the S&P 500 (0.77%). Today's close at 199.88 marks the highest recorded closing price since June 10th. Trading up to $3.47 lower after the open, Public Storage managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, PSA gained 4.47% on the following trading day. Closing above Thursday's high at 198.32, the stock confirmed its breakout through the previous session high after trading up to $1.68 above it intraday.
Daily Candlestick Chart (PSA as at Jul 31, 2020):
Friday's trading range has been $6.44 (3.27%), that's far above the last trading month's daily average range of $4.52. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PSA.
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.
Buyers managed to take out the key technical resistance level at 197.93 (now S1), which is likely to act as support going forward. After having been unable to move lower than 193.75 in the prior session, the market found buyers again around the same price level today at 193.56.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to July's high at 203.59, upside momentum might speed up should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Public Storage. Out of 487 times, PSA closed higher 55.65% 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 56.88% with an average market move of 0.47%.