Digital Realty Trust Jumps 6% On Bullish Technicals And Heavy Volume

Digital Realty Trust (DLR) shares surged 6.04% to close at $173.89 in the most recent session, marking the second consecutive day of gains with a cumulative 7.87% advance. This decisive upward movement warrants comprehensive technical evaluation across multiple frameworks.
Candlestick Theory
The price action demonstrates a robust bullish reversal pattern, with the September 9 session forming a hammer candlestick (low: $160.10, close: $163.98) after a preceding downtrend, followed by a decisive bullish marubozu on September 10 (open near $166.49, close: $173.89). This sequence indicates strong rejection of lower prices and buyer conviction. Key resistance now resides at $174.93 (September 10 high), with substantial support at $166.49 (September 10 low) reinforced by the psychological $160 level.
Moving Average Theory
The 50-day moving average (approximately $168.70), 100-day MA (near $170.20), and 200-day MA (~$166.80) exhibit a bullish configuration. The price recently reconquered all three key averages, while the 50-day maintains its position above the 200-day MA—a sustained golden cross pattern since mid-August. This alignment confirms an established intermediate uptrend, with the 200-day MA providing a robust support floor during recent pullbacks.
MACD & KDJ Indicators
MACD displays a strengthening bullish crossover, with both the MACD line and signal line accelerating above the zero line. Concurrently, the KDJ oscillator shows the %K line (86) crossing above %D (78) in overbought territory, reflecting extreme near-term momentum. While this suggests continuation potential, the overbought KDJ reading warrants monitoring for potential divergence. Notably, both oscillators align in signaling bullish momentum.
Bollinger Bands
Volatility expanded sharply on September 10 as price pierced the upper Bollinger Band ($173.20, 20-period SMA + 2σ), closing near the band’s boundary. This follows a pronounced bandwidth contraction in early September, indicating the resolution of compression through directional conviction. The current position suggests overextension, though sustained closes above the upper band historically precede trend continuations in DLR.
Volume-Price Relationship
Volume surged 58.6% to 3.00 million shares on September 10, significantly exceeding the 15-day average. This high-volume breakout validates the price surge, confirming institutional participation. The volume profile shows consistent accumulation above $165, with distribution activity notably absent during this rally phase—supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI has spiked to 72.5, breaching the overbought threshold (>70) for the first time since late July. While this signals near-term overheating, the magnitude of the breakout reduces the probability of immediate reversal. Historical observations show DLR can maintain elevated RSI readings during strong momentum phases, though traders should watch for bearish divergence on any pullback.
Fibonacci Retracement
Applying Fibonacci levels to the July 31 high ($180.57) and September 9 low ($160.10), the current rally has surpassed the 61.8% retracement at $172.75 and is challenging the 78.6% level at $176.17. This powerful recovery demonstrates resilient demand, with the 50% retracement ($170.33) now serving as primary support.
Confluence and Divergence Observations
Significant confluence exists at the $170.30-$172.75 zone, where the 50-day MA, Bollinger midline, 50% Fibonacci level, and VWAP converge—creating a high-probability support area. The sole caution emerges from the KDJ/RSI overbought alignment, though no material bearish divergence is yet evident. Volume confirmation and moving average alignment outweigh these momentum warnings currently. The Fibonacci break suggests further upside toward the $176-$180 resistance zone, provided volume sustains above average levels during consolidation.