UDR finds buyers around 35.62 for the forth day in a row
UDR Inc. (UDR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
UDR finished the week 4.37% higher at 36.28 after gaining $0.41 (1.14%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.23 lower after the open, the market 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 in a lackluster session.
Daily Candlestick Chart (UDR as at May 22, 2020):
Friday's trading range has been $0.69 (1.92%), that's far below the last trading month's daily average range of $1.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UDR. Prices continued to consolidate within a tight trading range between 35.62 and 37.35 where it has been caught now for the whole last trading week.
In spite of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on March 25th, UDR gained 8.79% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 35.62 earlier during the day, the stock bounced off the key technical support level at 35.62 (S1). The failure to close below the support might increase that levels significance as support going forward. UDR was bought again around 35.62 after having seen lows at 35.84, 35.62 and 35.83 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 36.90 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 35.62 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for UDR. Out of 68 times, UDR closed higher 54.41% 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 70.59% with an average market move of 1.74%.