QTS surges 3.58% on low volume
QTS Realty Trust Inc. Class A (QTS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
QTS finished the week -1.74% lower at 62.22 after surging $2.15 (3.58%) today on low volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (QTS as at May 22, 2020):
Friday's trading range has been $2.81 (4.66%), that's slightly above the last trading month's daily average range of $2.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for QTS.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 60.68 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 63.84 (R1). After having been unable to move lower than 59.89 in the prior session, the share found buyers again around the same price level today at 59.66.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 63.68. The last time this happened on March 24th, QTS gained 6.53% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for QTS Realty. Out of 47 times, QTS closed higher 55.32% 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 65.96% with an average market move of 0.69%.