VIRT dominated by bulls lifting the market higher throughout the day
Virtu Financial Inc. (VIRT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VIRT ended the week -4.37% lower at 21.86 after gaining $0.64 (3.02%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 21.61, the market confirmed its breakout through the prior session high after trading up to $0.31 above it intraday.
Daily Candlestick Chart (VIRT as at May 22, 2020):
Friday's trading range has been $0.84 (3.96%), that's below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VIRT.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 14th, VIRT actually lost -2.27% on the following trading day.
Prices are trading close to the key technical resistance level at 21.96 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 23.59.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 20.93 where further sell stops could get triggered. Further selling might move prices lower should the market test April's nearby low at 20.26.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Virtu Financial. Out of 243 times, VIRT closed lower 55.14% 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 10 trading days, showing a win rate of 56.79% with an average market move of -0.33%.