REG stuck within tight trading range
Regency Centers Corporation (REG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
REG finished the week 12.09% higher at 41.26 after losing $0.83 (-1.97%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (REG as at May 22, 2020):
Friday's trading range has been $2.03 (4.77%), that's below the last trading month's daily average range of $2.50. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for REG. Prices continued to consolidate within a tight trading range between 40.57 and 42.62 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 42.45 (R1). The market found buyers again today around 40.57 for the third trading day in a row after having found demand at 40.71 in the prior session and at 40.66 two days ago. The last time this happened on April 27th, REG gained 8.25% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 42.62 where further buy stops might get activated. As prices are trading close to May's high at 43.14, upside momentum could accelerate should Regency Centers mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Regency Centers. Out of 114 times, REG closed higher 55.26% 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 67.54% with an average market move of 1.50%.