VERI finds support at 20-day moving average
Veritone Inc. (VERI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, VERI ended the month 75.03% higher at 14.86 after tanking $2.07 (-12.23%) today, significantly underperforming the S&P 500 (1.54%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on June 5th, VERI actually gained 12.99% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 16.07, the share confirmed its breakout through the prior session low after trading up to $1.56 below it intraday.
Daily Candlestick Chart (VERI as at Jun 30, 2020):
Tuesday's trading range has been $2.56 (15.03%), that's slightly above the last trading month's daily average range of $2.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VERI.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 14.51 during the day, the market found support at the 20-day moving average at 14.79.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 14.25 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Veritone. Out of 85 times, VERI closed lower 54.12% 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 70.59% with an average market move of -1.40%.