RPAI closes higher for the 3rd day in a row
Retail Properties of America Inc. Class A (RPAI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RPAI finished Wednesday at 6.66 edging higher $0.04 (0.6%), significantly outperforming the S&P 500 (-0.46%). Trading $0.09 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 (RPAI as at Sep 16, 2020):
Wednesday's trading range has been $0.26 (3.89%), that's far below the last trading month's daily average range of $0.32. 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 slightly lower than usual for RPAI.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After trading down to 6.52 earlier during the day, Retail Properties bounced off the key technical support level at 6.63 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 6.78 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 6.78. The last time this happened on September 9th, RPAI lost -3.68% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 6.93 where further buy stops might get triggered. As prices are trading close to September's high at 6.93, upside momentum could accelerate should RPAI mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for Retail Properties. Out of 44 times, RPAI closed higher 54.55% 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 70.45% with an average market move of 1.14%.