VRNS closes higher for the 7th day in a row
Varonis Systems Inc. (VRNS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, VRNS ended the week 7.52% higher at 80.45 after gaining $1.93 (2.46%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 80.45 marks the highest recorded closing price since March 4th. Closing above Thursday's high at 79.66, the market confirmed its breakout through the prior session high after trading up to $1.19 above it intraday.
Daily Candlestick Chart (VRNS as at May 22, 2020):
Friday's trading range has been $2.44 (3.09%), that's below the last trading month's daily average range of $3.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VRNS.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 15th, VRNS gained 1.71% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to March's high at 85.08 we might see further upside momentum if potential buy stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Varonis Systems. Out of 355 times, VRNS closed higher 53.24% 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 57.46% with an average market move of 0.31%.