VRSK closes above its opening price after recovering from early selling pressure
Verisk Analytics Inc. (VRSK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
VRSK ended the month 10.88% higher at 188.71 after gaining $1.54 (0.82%) today on low volume, underperforming the Nasdaq 100 (1.78%). Today's close at 188.71 marks the highest recorded closing price ever. Trading up to $3.05 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (VRSK as at Jul 31, 2020):
Friday's trading range has been $3.89 (2.07%), that's slightly above the last trading month's daily average range of $3.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VRSK.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Hanging Man which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on Monday, VRSK lost -0.43% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Verisk Analytics. Out of 91 times, VRSK closed higher 52.75% 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 62.64% with an average market move of 1.04%.