VERI closes lower for the 2nd day in a row
Veritone Inc. (VERI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VERI finished the month -23.82% lower at 11.32 after losing $0.14 (-1.22%) today, notably underperforming the S&P 500 (0.77%). 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 31, 2020):
Friday's trading range has been $0.95 (7.98%), that's slightly below the last trading month's daily average range of $1.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for VERI. Prices continued to consolidate within a tight trading range between 10.85 and 11.91 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 22nd, VERI lost -4.66% on the following trading day.
Unable to break through the key technical resistance level at 11.90 (R1), the share closed below it after spiking up to 11.91 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 10.85 in the prior session, the market found buyers again around the same price level today at 10.96.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 12.11 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 10.85 where further sell stops might get triggered. As prices are trading close to July's low at 10.54, downside momentum could accelerate should Veritone mark new lows for the month.
Among the six 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 195 times, VERI closed lower 58.97% 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 61.03% with an average market move of -0.15%.