VERI pushes through key technical resistance level
Veritone Inc. (VERI) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VERI ended Monday at 8.82 gaining $0.33 (3.89%), notably outperforming the S&P 500 (0.38%). Today's close at 8.82 marks the highest recorded closing price since June 4, 2019. Closing above Friday's high at 8.60, Veritone confirmed its breakout through the previous session high after trading up to $0.31 above it intraday.
Daily Candlestick Chart (VERI as at Jun 01, 2020):
Monday's trading range has been $0.57 (6.71%), that's below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VERI.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 8.65 (now S1), which is likely to act as support going forward. The last time this happened on May 20th, VERI gained 8.28% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 9.98 is within reach and we could see further upside momentum should the market manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Veritone. Out of 15 times, VERI closed lower 73.33% 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 four trading days, showing a win rate of 66.67% with an average market move of -0.58%.