VERI closes below its opening price unable to hold early session gains
Veritone Inc. (VERI) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
VERI finished Tuesday at 17.41 losing $1.01 (-5.48%), significantly underperforming the S&P 500 (0.43%). Trading $1.07 higher after the open, Veritone was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 19th, VERI actually gained 9.06% on the following trading day. 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 Jun 23, 2020):
Tuesday's trading range has been $2.46 (13.23%), that's above the last trading month's daily average range of $1.75. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for VERI.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 12.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 16.13 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Veritone. Out of 28 times, VERI closed higher 60.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.71% with an average market move of 20.00%.