UDR breaks below key technical support level
UDR Inc. (UDR) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UDR ended the week 0.57% higher at 46.26 after losing $0.24 (-0.52%) today, underperforming the S&P 500 (0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UDR as at Jul 12, 2019):
Friday's trading range has been $0.33 (0.71%), that's far below the last trading month's daily average range of $0.72. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UDR.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 45.92 (S1). Prices broke below the key technical support level at 46.43 (now R1), which is likely to act as resistance going forward. The last time this happened on June 26th, UDR actually gained 0.97% on the following trading day. After having been unable to move lower than 46.22 in the prior session, the market found buyers again around the same price level today at 46.19.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 47.11, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for UDR. Out of 287 times, UDR closed higher 57.84% 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 62.02% with an average market move of 1.18%.