VERI closes within prior day's range
Veritone Inc. (VERI) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
VERI ended Wednesday at 16.44 gaining $1.58 (10.63%), notably outperforming the S&P 500 (0.5%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Jul 01, 2020):
Wednesday's trading range has been $1.75 (11.67%), that's slightly below the last trading month's daily average range of $2.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VERI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, VERI actually lost -7.55% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Veritone. Out of 125 times, VERI closed lower 58.40% 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 two trading days, showing a win rate of 62.40% with an average market move of -0.69%.