VMI unable to break through key resistance level
Valmont Industries Inc. (VMI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VMI ended the week 4.65% higher at 151.99 after losing $0.61 (-0.4%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VMI as at Feb 14, 2020):
Friday's trading range has been $2.84 (1.86%), that's slightly above the last trading month's daily average range of $2.63. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VMI.
Unable to break through the key technical resistance level at 153.01 (R1), the stock closed below it after spiking up to 153.38 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, VMI actually gained 2.00% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 153.67, upside momentum could accelerate should the share be able to break out to new highs for the year.