VRSK closes within prior day's range
Verisk Analytics Inc. (VRSK) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
VRSK finished Monday at 172.85 losing $1.32 (-0.76%), but still notably outperforming the Nasdaq 100 (-2.16%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VRSK as at Jul 13, 2020):
Monday's trading range has been $4.38 (2.5%), that's slightly below the last trading month's daily average range of $4.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VRSK. Prices continued to consolidate within a tight trading range between 169.84 and 176.45 where it has been caught now for the whole last trading week.
Despite a strong opening Verisk Analytics closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on June 26th, VRSK actually gained 0.89% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 169.84 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 176.48 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 170.58 where further sell stops could get triggered. As prices are trading close to July's low at 168.48, downside momentum might speed up should the stock mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Verisk Analytics. Out of 102 times, VRSK closed higher 60.78% 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 62.75% with an average market move of 0.69%.