VRSK runs into sellers again around 188.84
Verisk Analytics Inc. (VRSK) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
VRSK ended Wednesday at 186.66 losing $1.06 (-0.56%), underperforming the Nasdaq 100 (0.26%) following Tuesday's earnings report. 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 Aug 05, 2020):
VRSK reported earnings of $1.29 per share after Tuesday's market close. With analysts having expected an EPS of $1.19, Verisk Analytics Inc. beat market expectations by 8.4%. The company's last earnings report was released on May 5, 2020, when Verisk Analytics Inc. reported earnings of $1.17 per share beating market expectations by 3.5%.
Wednesday's trading range has been $4.26 (2.26%), that's above the last trading month's daily average range of $3.44. 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.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 23rd, VRSK lost -0.47% on the following trading day. Notwithstanding a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 183.92 (S1). After having been unable to move above 188.61 in the prior session, Verisk Analytics ran into sellers again around the same price level today, missing to move higher than 188.84.
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 nearby swing high at 190.00 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Verisk Analytics. Out of 18 times, VRSK closed higher 66.67% of the time on the next trading day after the market condition occurred.