Public Storage (NYSE: PSA) PSA stock chart shows the lower lows and that sellers persisted in making short buildups. Furthermore, the chart shows the three black crows pattern with a strong bearish candlestick breaking the previous low of $255 and is heading toward the round mark of $250. Amid the buyers’ attempt to surpass the 50 day EMA, buyers faced a strong rejection and further follow-on selling was witnessed.
PSA stock was trading in a downtrend and has lost momentum due to a strong selloff. Per the options chain, at the strike price of $260, a massive open interest of 278 hundred shares on the put side, whereas 12 hundred shares on the call side, shows that long positions were trapped and buyers were in trouble.
At press time, PSA stock price was $251.19 with an intraday drop of 2.83% highlighting the bearishness. Moreover, trading volume increased by 1.23% to 1.02 Million while the market cap is $44.167 Billion. However, analysts have maintained a neutral rating with a yearly target price of $315.75.
Public Storage operates as a real estate investment trust, which engages in acquiring, developing, owning and operating self-storage facilities. It operates through the following segments: Self-storage Operations, Ancillary Operations, and Other Items. The Self-storage Operations segment reflects the rental operations from all self-storage facilities. The Ancillary Operations segment deals with the sale of merchandise and reinsurance of policies against losses to goods stored by self-storage tenants, activities which are incidental to the primary self-storage rental activities. The Other Items segment includes general, administrative, and investment costs.
Will PSA Stock Hold $250 or Continue to Lose?
On the daily charts, PSA stock price is below the significant moving averages and is favoring the bears. Furthermore, the price action shows a massive selloff and has splitted the immediate support zone of $260. Moreover, the buyers were trapped and started unwinding their positions due to the fear of missing out. However, PSA stock price is close to the round mark of $250, which if sustained, a pullback toward the 20 day EMA would be anticipated, whereas if broken, the selloff will extend to $230.
The RSI curve is in the oversold region and showed a negative crossover indicating a bear dominance. The MACD shows a bearish crossover and red bars on the histogram suggesting follow-on selling pressure will continue in the upcoming sessions.
Summary
PSA stock price showed bearishness and has slipped below the significant moving averages indicating bears’ dominance on the charts. Moreover, the three black crows pattern with a strong breakdown candle was also witnessed. However, PSA stock price is close to the round mark of $250 which buyers tried to protect for a significant pullback.
Technical Levels
Support Levels: $250 and $235
Resistance Levels: $260 and $270
Disclaimer
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Source: https://www.thecoinrepublic.com/2023/10/22/psa-stock-nyse-psa-faces-selloff-will-bulls-protect-250/