VNE breaks below Thursday's low
Veoneer Inc. (VNE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, VNE ended the month -5.99% lower at 10.05 after losing $0.30 (-2.9%) today, notably underperforming the S&P 500 (0.77%). Today's close at 10.05 marks the lowest recorded closing price since May 22nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 10.21, the market confirmed its breakout through the previous session low after trading up to $0.30 below it intraday.
Daily Candlestick Chart (VNE as at Jul 31, 2020):
Friday's trading range has been $0.45 (4.34%), that's slightly below the last trading month's daily average range of $0.53. 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 VNE.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on June 19th, VNE gained 1.09% on the following trading day.
After trading down to 9.91 earlier during the day, the stock bounced off the key technical support level at 10.01 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 10.45 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 10.36.
While Veoneer is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Veoneer. Out of 19 times, VNE closed higher 63.16% of the time on the next trading day after the market condition occurred.