SBRA breaks below key technical support level
Sabra Health Care REIT Inc. (SBRA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SBRA finished Wednesday at 15.82 losing $0.19 (-1.19%) on high volume, underperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SBRA as at Sep 16, 2020):
Wednesday's trading range has been $0.52 (3.24%), that's slightly above 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 below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SBRA.
Notwithstanding a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices broke below the key technical support level at 15.97 (now R1), which is likely to act as resistance going forward. The last time this happened on August 26th, SBRA actually gained 3.21% on the following trading day. After having been unable to move above 16.22 in the previous session, Sabra Health ran into sellers again around the same price level today, missing to move higher than 16.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 16.22 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sabra Health. Out of 115 times, SBRA closed higher 56.52% 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 seven trading days, showing a win rate of 51.30% with an average market move of 0.21%.