VNOM rises to highest close since January 22nd
Viper Energy Partners LP (VNOM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VNOM finished the week 6.6% higher at 23.57 after gaining $0.80 (3.51%) today on high volume, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 23.57 marks the highest recorded closing price since January 22nd.
Daily Candlestick Chart (VNOM as at Feb 14, 2020):
Friday's trading range has been $0.87 (3.78%), that's slightly above the last trading month's daily average range of $0.80. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VNOM.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 23.14 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 24.17 (R1).
While the stock 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 four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Viper Energy. Out of 25 times, VNOM closed lower 60.00% 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 64.00% with an average market move of -2.33%.