VGT closes above its opening price after recovering from early selling pressure
Vanguard Information Tech (VGT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VGT ended the week 3.65% higher at 256.72 after edging higher $1.25 (0.49%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $1.06 lower after the open, Vanguard Information managed to reverse during the session as bulls took control ending the day above its opening price. 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 (VGT as at May 22, 2020):
Friday's trading range has been $2.89 (1.13%), that's below the last trading month's daily average range of $4.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VGT. Prices continued to consolidate within a tight trading range between 251.95 and 259.36 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, VGT actually lost -1.24% on the following trading day.
Prices are trading close to the key technical support level at 253.27 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 259.36 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Vanguard Information. Out of 147 times, VGT closed higher 58.50% 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 68.03% with an average market move of 1.07%.