UDR soars, gaining $0.71 (1.43%) within a single day on high volume
UDR Inc. (UDR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UDR ended the week 3.05% higher at 50.32 after surging $0.71 (1.43%) today on high volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over three months. Today's close at 50.32 marks the highest recorded closing price since October 30, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (UDR as at Feb 14, 2020):
Friday's trading range has been $0.64 (1.29%), that's above the last trading month's daily average range of $0.56. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UDR.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 49.81 (now S1), which is likely to act as support going forward. The last time this happened on January 30th, UDR actually lost -0.56% on the following trading day. Prices are trading close to the key technical resistance level at 50.61 (R1).
Crossing above the upper Bollinger Band for the first time since Monday, 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 48.52 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.
2019's high at 50.61 is within reach and we could see further upside momentum should the stock manage to break out beyond.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for UDR. Out of 105 times, UDR closed higher 57.14% 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 60.00% with an average market move of 0.46%.