VRSN fails to close above 20-day moving average
VeriSign Inc. (VRSN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VRSN ended the month -5.56% lower at 206.83 after gaining $2.73 (1.34%) today, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 205.61, the share confirmed its breakout through the previous session high after trading up to $2.37 above it intraday.
Daily Candlestick Chart (VRSN as at Jun 30, 2020):
Tuesday's trading range has been $4.66 (2.29%), that's slightly below the last trading month's daily average range of $5.76. 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 VRSN.
Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 207.98 during the day, VeriSign found resistance at the 20-day moving average at 207.75. The last time this happened on March 26th, VRSN lost -1.13% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for VeriSign. Out of 575 times, VRSN closed higher 54.09% 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 61.04% with an average market move of 0.94%.