V closes below its opening price unable to hold early session gains
Visa Inc. (V) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
V finished the week -0.23% lower at 169.66 after edging higher $0.31 (0.18%) today on low volume, slightly outperforming the Dow Indu. (-0.07%). Trading $0.87 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (V as at Jun 14, 2019):
Friday's trading range has been $1.80 (1.06%), that's below the last trading month's daily average range of $2.61. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for V.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move lower than 168.72 in the prior session, Visa found buyers again around the same price level today at 168.84. The last time this happened on May 22nd, V actually lost -1.66% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 172.20 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 168.72 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Visa. Out of 391 times, V closed higher 60.36% 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 65.98% with an average market move of 1.61%.