V closes within prior day's range after lackluster session
Visa Inc. (V) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
V finished the week 4.02% higher at 190.86 after edging higher $0.24 (0.13%) today on low volume, slightly outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. 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 (V as at May 22, 2020):
Friday's trading range has been $2.14 (1.12%), that's far below the last trading month's daily average range of $4.28. 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 V.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Hanging Man showed up on May 11th, V lost -2.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 194.99 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Visa. Out of 208 times, V closed higher 57.69% 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 63.94% with an average market move of 1.39%.