UDR misses to close above 20-day moving average
UDR Inc. (UDR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UDR finished the month -3.16% lower at 36.20 after edging higher $0.10 (0.28%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.65 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, UDR gained 1.64% on the following trading day. Closing above Thursday's high at 36.17, the market confirmed its breakout through the prior session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (UDR as at Jul 31, 2020):
Friday's trading range has been $0.98 (2.73%), that's slightly above the last trading month's daily average range of $0.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 34.48 and 36.26 where it has been caught now for the whole last trading week.
After trading down to 35.28 earlier during the day, the stock bounced off the key technical support level at 35.86 (S1). The failure to close below the support might increase that levels significance as support going forward. After spiking up to 36.26 during the day, UDR found resistance at the 20-day moving average at 36.22. The share was sold again around 36.26 after having seen highs at 36.17, 36.22 and 36.22 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 accelerate should prices move above the nearby swing high at 36.63 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for UDR. Out of 62 times, UDR closed higher 58.06% 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 70.97% with an average market move of 2.00%.