REG closes below its opening price unable to hold early session gains
Regency Centers Corporation (REG) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, REG finished the week -0.77% lower at 68.49 after gaining $0.19 (0.28%) today on low volume, underperforming the S&P 500 (1.09%). Trading $0.52 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (REG as at Oct 11, 2019):
Friday's trading range has been $0.91 (1.33%), that's slightly below the last trading month's daily average range of $0.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for REG.
Three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Bearish Spinning Top and the Bearish High-Wave Candle which are known as bearish patterns.
The market managed to close back above the 20-day moving average at 68.38. When this moving average was crossed above the last time on September 3rd, REG gained 1.76% on the following trading day. Unable to break through the key technical resistance level at 68.82 (R1), Regency Centers closed below it after spiking up to 69.07 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 68.10 in the previous session, the share found buyers again around the same price level today at 68.16.
Although REG is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 69.47 where further buy stops might get triggered. With prices trading close to this year's high at 70.26, upside momentum could accelerate should the stock be able to break out to new highs for the year. As prices are trading close to October's high at 69.88, upside momentum might speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Regency Centers. Out of 325 times, REG closed higher 57.54% 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 56.00% with an average market move of 0.35%.