VRSK closes within previous day's range after lackluster session
Verisk Analytics Inc. (VRSK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VRSK ended the week 1.76% higher at 157.28 after gaining $0.44 (0.28%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (VRSK as at May 22, 2020):
Friday's trading range has been $2.27 (1.46%), that's far below the last trading month's daily average range of $4.06. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VRSK.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on May 11th, VRSK actually lost -2.56% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 161.04 where further buy stops could get triggered. As prices are trading close to May's high at 161.74, upside momentum might accelerate should the market mark new highs for the month. As prices are trading close to May's low at 149.85, downside momentum could speed up should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Verisk Analytics. Out of 65 times, VRSK closed higher 53.85% 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 60.00% with an average market move of 0.32%.