VERI dominated by bulls lifting the market higher throughout the day
Veritone Inc. (VERI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VERI ended Thursday at 2.43 gaining $0.27 (12.5%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 2.30, Veritone confirmed its breakout through the prior session high after trading up to $0.14 above it intraday.
Daily Candlestick Chart (VERI as at Mar 26, 2020):
Thursday's trading range has been $0.26 (11.82%), that's below the last trading month's daily average range of $0.35. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VERI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, VERI gained 7.18% on the following trading day.
The market managed to close above the 20-day moving average at 2.32 for the first time since March 5th. Prices are trading close to the key technical resistance level at 2.51 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for Veritone. Out of 37 times, VERI closed lower 62.16% 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 64.86% with an average market move of -5.49%.