UDR still stuck within tight trading range
UDR Inc. (UDR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UDR ended the month 1.08% higher at 37.38 after gaining $0.59 (1.6%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 36.93, the stock confirmed its breakout through the previous session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (UDR as at Jun 30, 2020):
Tuesday's trading range has been $0.78 (2.11%), that's far below the last trading month's daily average range of $1.20. 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 35.86 and 37.52 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 25th, UDR actually lost -1.09% on the following trading day.
Buyers managed to take out the key technical resistance level at 37.04 (now S1), which is likely to act as support going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 38.17 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for UDR. Out of 332 times, UDR closed higher 57.23% 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 58.13% with an average market move of 0.12%.