VRSN closes below its opening price unable to hold early session gains
VeriSign Inc. (VRSN) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VRSN ended the week 1.17% higher at 186.49 after gaining $0.94 (0.51%) today on low volume, underperforming the S&P 500 (1.09%). Trading $1.34 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, VRSN actually gained 1.70% on the following trading day.
Daily Candlestick Chart (VRSN as at Oct 11, 2019):
Friday's trading range has been $2.75 (1.47%), that's below the last trading month's daily average range of $3.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VRSN.
Prices are trading close to the key technical support level at 185.39 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to October's high at 189.00, upside momentum might speed up should VeriSign mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for VeriSign. Out of 439 times, VRSN closed higher 59.00% 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 61.73% with an average market move of 0.73%.