VRSK pushes through Wednesday's high
Verisk Analytics Inc. (VRSK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
VRSK finished Thursday at 142.10 gaining $7.80 (5.81%) on low volume, slightly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 138.90, Verisk Analytics confirmed its breakout through the previous session high after trading up to $4.58 above it intraday.
Daily Candlestick Chart (VRSK as at Mar 26, 2020):
Thursday's trading range has been $7.94 (5.86%), that's below the last trading month's daily average range of $10.68. 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 strongly higher than usual for VRSK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, VRSK actually lost -2.17% on the following trading day.
Prices are trading close to the key technical resistance level at 148.48 (R1).
Although 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.
Buying could speed up should prices move above the nearby swing high at 144.98 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Verisk Analytics. Out of 298 times, VRSK closed higher 56.04% 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 59.73% with an average market move of 0.66%.