VFC breaks below Thursday's low
V.F. Corporation (VFC) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VFC finished the week -0.24% lower at 71.46 after tanking $2.18 (-2.96%) today, significantly underperforming the S&P 500 (-0.01%). This is the biggest single-day loss in over two weeks. The last time we've seen such an unusually strong single-day loss on December 24, 2018, VFC actually gained 3.61% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 72.45, the stock confirmed its breakout through the prior session low after trading up to $1.35 below it intraday.
Daily Candlestick Chart (VFC as at Jan 11, 2019):
Friday's trading range has been $2.00 (2.74%), that's slightly below the last trading month's daily average range of $2.09. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VFC.
One bearish candlestick pattern matches today's price action, the Black Candle.
V. F. closed back below the 20-day moving average at 71.95 for the first time since January 4th.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
2018's low at 67.18 is within reach and we could see further downside momentum should the market break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for V. F.. Out of 435 times, VFC closed higher 55.63% 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 58.39% with an average market move of 1.30%.