VAR closes higher for the 4th day in a row
Varian Medical Systems Inc. (VAR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, VAR ended the month 0.93% higher at 122.52 after gaining $2.10 (1.74%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 120.46, the market confirmed its breakout through the prior session high after trading up to $2.99 above it intraday.
Daily Candlestick Chart (VAR as at Jun 30, 2020):
Tuesday's trading range has been $4.17 (3.47%), that's slightly below the last trading month's daily average range of $4.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VAR.
One bullish candlestick pattern matches today's price action, the White Candle.
Varian Medical managed to close above the 20-day moving average at 121.25 for the first time since June 10th. When this moving average was crossed above the last time on May 26th, VAR gained 2.73% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Varian Medical. Out of 159 times, VAR closed higher 52.83% 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 59.75% with an average market move of 0.53%.