SRC breaks below Tuesday's low
Spirit Realty Capital Inc. (SRC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SRC ended Wednesday at 36.86 losing $0.40 (-1.07%) on high volume, underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 37.15, Spirit Realty confirmed its breakout through the previous session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (SRC as at Sep 16, 2020):
Wednesday's trading range has been $0.71 (1.9%), that's far below the last trading month's daily average range of $1.11. 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 higher than usual for SRC.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on August 18th, SRC lost -4.11% on the following trading day.
Prices are trading close to the key technical support level at 36.55 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Spirit Realty. Out of 39 times, SRC closed higher 66.67% 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 51.28% with an average market move of 0.28%.