VER closes lower for the 2nd day in a row
VEREIT Inc. (VER) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VER ended the month 1.24% higher at 6.51 after edging lower $0.03 (-0.46%) today, notably underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VER as at Jul 31, 2020):
Friday's trading range has been $0.25 (3.79%), that's slightly above the last trading month's daily average range of $0.24. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VER. Prices continued to consolidate within a tight trading range between 6.39 and 6.67 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on June 19th, VER lost -1.62% on the following trading day.
After having been unable to move above 6.62 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 6.64.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 6.67 where further buy stops could get activated. As prices are trading close to July's high at 6.75, upside momentum might accelerate should VEREIT mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for VEREIT. Out of 637 times, VER closed higher 51.02% of the time on the next trading day after the market condition occurred.