VAR closes within prior day's range after lackluster session
Varian Medical Systems Inc. (VAR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VAR ended the week 4.34% higher at 146.92 after edging higher $0.01 (0.01%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (VAR as at Feb 14, 2020):
Friday's trading range has been $1.38 (0.94%), that's far below the last trading month's daily average range of $2.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VAR.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on January 17th, VAR lost -0.62% on the following trading day.
Prices are trading close to the key technical resistance level at 147.36 (R1).
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 148.17 where further buy stops could get triggered. With prices trading close to this year's high at 150.06, upside momentum might accelerate should Varian Medical be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Varian Medical. Out of 802 times, VAR closed higher 58.23% 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 55.74% with an average market move of 0.60%.