PSA finds buyers at key support level
Public Storage (PSA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PSA finished Wednesday at 224.51 gaining $3.50 (1.58%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PSA as at Sep 16, 2020):
Wednesday's trading range has been $4.76 (2.14%), that's slightly below the last trading month's daily average range of $4.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PSA.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading down to 221.55 earlier during the day, the market bounced off the key technical support level at 222.05 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 220.76 in the prior session, Public Storage found buyers again around the same price level today at 221.55. The last time this happened on September 8th, PSA gained 1.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 226.60 where further buy stops could get triggered. With prices trading close to this year's high at 233.37, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Public Storage. Out of 495 times, PSA closed higher 58.59% 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 57.58% with an average market move of 0.55%.