VMI pops to highest close since March 10th
Valmont Industries Inc. (VMI) Technical Analysis Report for Mar 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VMI finished the month -8.81% lower at 105.98 after gaining $3.93 (3.85%) today, significantly outperforming the S&P 500 (-1.6%). Today's close at 105.98 marks the highest recorded closing price since March 10th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 102.08, Valmont confirmed its breakout through the previous session high after trading up to $4.33 above it intraday.
Daily Candlestick Chart (VMI as at Mar 31, 2020):
Tuesday's trading range has been $5.47 (5.42%), that's slightly below the last trading month's daily average range of $6.69. 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 notably lower than usual for VMI.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 110.97 (R1).
While 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.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Valmont. Out of 320 times, VMI closed lower 53.13% of the time on the next trading day after the market condition occurred.