VERI finds buyers at key support level
Veritone, Inc. (VERI) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VERI finished the week -3.48% lower at 8.60 after gaining $0.07 (0.82%) today, underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VERI as at Oct 12, 2018):
Friday's trading range has been $0.50 (5.71%), that's slightly above the last trading month's daily average range of $0.48. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for VERI.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 8.40 earlier during the day, the market bounced off the key technical support level at 8.50 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 17th, VERI gained 1.38% on the following trading day. After having been unable to move above 8.94 in the previous session, Veritone ran into sellers again around the same price level today, failing to move higher than 8.90.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 8.12 where further sell stops could get activated. 2017's low at 7.76 is within reach and we might see further downside momentum should the share break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Veritone. Out of 43 times, VERI closed lower 58.14% of the time on the next trading day after the market condition occurred.