VFC unable to break through key resistance level
V.F. Corp. (VFC) Technical Analysis Report for Oct 12, 2018
VFC finished the week -4.42% lower at 87.43 after gaining $1.96 (2.29%) today, outperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VFC as at Oct 12, 2018):
Friday's trading range has been $1.43 (1.64%), that's slightly below the last trading month's daily average range of $1.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for VFC.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 87.76 (R1), the market closed below it after spiking up to 88.00 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, VFC lost -6.85% on the following trading day. After having been unable to move above 87.75 in the prior session, V. F. Corp. ran into sellers again around the same price level today, missing to move higher than 88.00.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 91.40.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for V. F. Corp.. Out of 545 times, VFC closed higher 53.03% 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 57.06% with an average market move of 0.91%.