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May 24, 2023
Though in the midst of a 6 day uptrend, gaining a total of 1.89%, ($3), Yesterday's session suggests run might be coming to an end — the US REIT has recovered almost all of its session losses after dipping down to $122.7 yesterday.
Crude Oil Inventories data from United States will be released today at 14:30 UTC with analysts expecting a decline to -920,000. Potentially significant price fluctuations in ProLogis are expected to follow.
While price action maintains a negative bias, United States New Home Sales (Apr) came out at 683,000, while a consensus of analysts was expecting 663,000. United States Services PMI released yesterday at 13:45 UTC with a figure of 55.1, while the previous figure was 53.6. United States Building Permits released yesterday at 12:00 UTC with a figure of 1.15 million, while the previous figure was 1.43 million.
Yesterday's price action generated a Japanese candlestick pattern showing a Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. Trend and momentum analysis indicates that ProLogis made an initial break below its 21 day Simple Moving Average at $123.92, a possible indication of a forthcoming negative trend. According to asset volatility analysis, ProLogis's lower Bollinger Band® is at $120.56, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. ProLogis chart analysis: ProLogis could begin to recover as it approaches significant support, now $1.05 away from $122.49. Dipping below could be an indication that further losses are ahead.
Overall, while ProLogis has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Looking ahead, ongoing depreciation may be prolonged as United States Crude Oil Inventories projected to come out at -920,000 — worse than previous data of 5 million; data will be released today at 14:30 UTC. Projections for United States Initial Jobless Claims are set for a continuation of decline with 250,000 while previous data was 242,000; data will be released tomorrow at 12:30 UTC.
Some optimism can drawn from the fact that United States Pending Home Sales is projected to outperform its last figure with 0.5%. It previously stood at -5.2%; data will be released tomorrow at 14:00 UTC.
The stock has been trending positively for about 2 months. After hitting an important low of $98.9 approximately 7 months ago, the US REIT has bounced back 25.61% since.
