REG closes above its opening price after recovering from early selling pressure
Regency Centers Corporation (REG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, REG finished the week 1.43% higher at 64.02 after surging $1.19 (1.89%) today on high volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over four months. Today's close at 64.02 marks the highest recorded closing price since January 23rd. Trading up to $0.69 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, REG actually lost -1.80% on the following trading day. Closing above Thursday's high at 63.40, Regency Centers confirmed its breakout through the prior session high after trading up to $0.68 above it intraday.
Daily Candlestick Chart (REG as at Feb 14, 2020):
Friday's trading range has been $1.64 (2.6%), that's far above the last trading month's daily average range of $0.99. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for REG.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 63.16. Prices are trading close to the key technical resistance level at 64.49 (R1).
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 64.36 where further buy stops might get triggered. Trading close to December's high at 65.43 we could see further upside momentum if potential buy stops at the level get activated.
Among the 12 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 Regency Centers. Out of 471 times, REG closed higher 59.24% 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 56.48% with an average market move of 0.30%.