SUI runs into sellers again around 147.10
Sun Communities Inc. (SUI) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
SUI ended the week -2.58% lower at 145.66 after losing $0.28 (-0.19%) today on high volume, slightly underperforming the S&P 500 (-0.07%). Trading up to $1.12 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SUI as at Sep 13, 2019):
Friday's trading range has been $2.62 (1.8%), that's slightly below the last trading month's daily average range of $2.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SUI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 143.21 (S1). Prices are trading close to the key technical resistance level at 147.44 (R1). After having been unable to move above 147.67 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 147.10. The last time this happened on August 28th, SUI actually gained 0.14% on the following trading day.
Though Sun Communities is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 147.67 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Sun Communities. Out of 169 times, SUI closed higher 55.03% 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 59.76% with an average market move of 0.77%.