SRC closes higher for the 2nd day in a row
Spirit Realty Capital Inc. (SRC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SRC ended the month 22.62% higher at 34.86 after edging higher $0.21 (0.61%) today, underperforming the S&P 500 (1.54%). Trading up to $0.32 lower after the open, Spirit Realty managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SRC as at Jun 30, 2020):
Tuesday's trading range has been $0.72 (2.07%), that's far below the last trading month's daily average range of $2.04. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SRC. Prices continued to consolidate within a tight trading range between 33.68 and 36.01 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move above 34.92 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 35.15. The last time this happened on June 25th, SRC lost -4.18% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 36.68 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 33.68 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Spirit Realty. Out of 199 times, SRC closed higher 51.76% 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 61.81% with an average market move of 0.63%.