UDR finds buyers again around 40.16
UDR Inc. (UDR) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, UDR ended the week 4.93% higher at 40.84 after gaining $0.20 (0.49%) today, notably outperforming the S&P 500 (-0.92%). Today's close at 40.84 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 40.70, the share confirmed its breakout through the prior session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (UDR as at Nov 09, 2018):
Friday's trading range has been $0.73 (1.82%), that's slightly below the last trading month's daily average range of $0.81. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UDR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on September 13th, UDR lost -0.96% on the following trading day.
Prices are trading close to the key technical resistance level at 41.04 (R1). After having been unable to move lower than 40.20 in the previous session, the market found buyers again around the same price level today at 40.16.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 39.48 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 41.13 where further buy stops might get triggered. With prices trading close to this year's high at 41.13, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for UDR. Out of 37 times, UDR closed higher 62.16% 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 two trading days, showing a win rate of 54.05% with an average market move of 0.12%.