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Possible Bullish Inside Day Candle Pattern Detected for AvalonBay Communities (NYSE:AVB)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in AvalonBay Communities (NYSE:AVB) based on the price action in the company's shares. Today's price range of $170.49 and $172.11 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of AvalonBay Communities may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

AvalonBay Communities, Inc. is a self-managed, fully-integrated multi-family real estate investment trust. The Company focuses on the ownership and operation of institutional-quality apartment communities in high barrier-to-entry markets of the United States. The markets are located in Northern and South California and in the Mid-Atlantic, Northeast, Midwest and Pacific Northwest region.

Over the past year, AvalonBay Communities has traded in a range of $158.72 to $192.29 and is now at $171.02, 8% above that low. Over the last five market days, the 200-day moving average (MA) has gone up 0.2% while the 50-day MA has advanced 0.6%.

AvalonBay Communities (NYSE:AVB) has potential upside of 12.7% based on a current price of $171.02 and analysts' consensus price target of $192.75. The stock should find initial resistance at its 200-day moving average (MA) of $176.55 and further resistance at its 50-day MA of $182.94.

SmarTrend recommended that its subscribers protect gains by selling shares of AvalonBay Communities on May 18th, 2016 by issuing a Downtrend alert when the shares were trading at $182.07. Since that call, shares of AvalonBay Communities have fallen 6.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle avalonbay communities

Ticker(s): AVB