UDR closes within previous day's range after lackluster session
UDR Inc. (UDR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
UDR ended Wednesday at 34.96 gaining $0.16 (0.46%), outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $0.64 (1.83%), that's far below the last trading month's daily average range of $0.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UDR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 35.40 (R1). The market ran into sellers again today around 35.37 for the third trading day in a row after having found sellers at 35.39 in the prior session and at 35.43 two days ago. The last time this happened on July 31st, UDR lost -2.98% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 35.43 where further buy stops could get triggered. As prices are trading close to September's high at 36.07, upside momentum might accelerate should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for UDR. Out of 623 times, UDR closed higher 52.65% 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 58.75% with an average market move of 0.54%.