RPAI finds buyers around 4.61 for the third day in a row
Retail Properties of America Inc. Class A (RPAI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
RPAI finished Thursday at 5.26 losing $0.08 (-1.5%), significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RPAI as at Mar 26, 2020):
Thursday's trading range has been $0.79 (14.68%), that's slightly below the last trading month's daily average range of $0.88. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for RPAI. Prices continued to consolidate within a tight trading range between 4.61 and 5.80 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 5.83 (R1). The market found buyers again today around 4.61 for the third trading day in a row after having found demand at 4.78 in the previous session and at 4.62 two days ago. The last time this happened on December 17, 2019, RPAI gained 1.23% 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 close-by swing high at 5.80 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Retail Properties. Out of 105 times, RPAI closed higher 56.19% 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 60.00% with an average market move of 0.84%.