VMC ends the day on a bearish note closing near the low of the day
Vulcan Materials Company (VMC) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VMC finished the month -4.12% lower at 108.32 after losing $2.05 (-1.86%) today on low volume, strongly underperforming the S&P 500 (0.48%). Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (VMC as at May 29, 2020):
Friday's trading range has been $1.96 (1.79%), that's far below the last trading month's daily average range of $4.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VMC.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 19th, VMC actually gained 2.43% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 113.11 where further buy stops might get activated. As prices are trading close to May's high at 114.13, upside momentum could accelerate should the stock mark new highs 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. Although it is usually interpreted as bearish, it has actually shown to be bullish for Vulcan Materials. Out of 557 times, VMC closed higher 50.45% 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 55.66% with an average market move of 0.91%.