VERI stuck within tight trading range
Veritone Inc. (VERI) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
VERI finished Thursday at 15.63 losing $0.81 (-4.93%), strongly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VERI as at Jul 02, 2020):
Thursday's trading range has been $1.89 (11.39%), that's slightly below the last trading month's daily average range of $2.11. 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. Prices continued to consolidate within a tight trading range between 14.51 and 17.07 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Tuesday, VERI actually gained 10.63% on the following trading day.
Prices are trading close to the key technical support level at 14.18 (S1). After having been unable to move lower than 14.93 in the prior session, the stock found buyers again around the same price level today at 15.05.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 14.51 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Its common bearish interpretation has been confirmed for Veritone. Out of 189 times, VERI closed lower 57.67% 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 eight trading days, showing a win rate of 59.26% with an average market move of 0.32%.