VIAV climbs to highest close since February 21st
Viavi Solutions Inc. (VIAV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VIAV ended the month 8.56% higher at 13.83 after gaining $0.09 (0.66%) today, slightly underperforming the S&P 500 (0.77%). Today's close at 13.83 marks the highest recorded closing price since February 21st. Trading up to $0.18 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 16th, VIAV gained 2.35% on the following trading day. Closing above Thursday's high at 13.79, the stock confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (VIAV as at Jul 31, 2020):
Friday's trading range has been $0.27 (1.97%), that's below the last trading month's daily average range of $0.35. 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 VIAV.
After trading down to 13.56 earlier during the day, the share bounced off the key technical support level at 13.74 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 13.79 in the prior session, Viavi Solutions ran into sellers again around the same price level today, failing to move higher than 13.83.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Viavi Solutions. Out of 225 times, VIAV closed higher 51.11% 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 57.33% with an average market move of 0.59%.