SBRA closes within previous day's range
Sabra Health Care REIT Inc. (SBRA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SBRA finished the month 2.15% higher at 14.74 after losing $0.17 (-1.14%) today, significantly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SBRA as at Jul 31, 2020):
Friday's trading range has been $0.49 (3.3%), that's slightly below the last trading month's daily average range of $0.52. 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 SBRA. Prices continued to consolidate within a tight trading range between 14.41 and 15.10 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 22nd, SBRA actually gained 6.09% on the following trading day.
After trading as low as 14.41 during the day, Sabra Health found support at the 50-day moving average at 14.43. Unable to break through the key technical resistance level at 14.86 (R1), the share closed below it after spiking up to 14.90 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 15.10 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sabra Health. Out of 71 times, SBRA closed higher 53.52% 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 59.15% with an average market move of 1.13%.