VERI closes within previous day's range
Veritone Inc. (VERI) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, VERI ended the week -10.04% lower at 2.24 after losing $0.09 (-3.86%) today, notably underperforming the S&P 500 (-0.9%). Today's close at 2.24 marks the lowest recorded closing price ever. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VERI as at Jan 24, 2020):
Friday's trading range has been $0.17 (7.23%), that's slightly below the last trading month's daily average range of $0.17. 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 lower than usual for VERI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 2.35 (R1), the market closed below it after spiking up to 2.35 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 2.20 in the previous session, Veritone found buyers again around the same price level today at 2.18.
Crossing below the lower Bollinger Band for the first time since December 30, 2019, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 2.49 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on December 30, 2019, VERI actually gained 5.06% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Veritone. Out of 23 times, VERI closed lower 56.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 82.61% with an average market move of -5.60%.