VRTX soars, gaining $5.66 (3.22%) within a single day
Vertex Pharmaceuticals Incorporated (VRTX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
VRTX finished the week -3.58% lower at 181.32 after surging $5.66 (3.22%) today, slightly outperforming the Nasdaq 100 (2.77%). This is the biggest single-day gain in over three months. Closing above Thursday's high at 177.84, the stock confirmed its breakout through the previous session high after trading up to $4.35 above it intraday.
Daily Candlestick Chart (VRTX as at Oct 12, 2018):
Friday's trading range has been $6.29 (3.55%), that's far above the last trading month's daily average range of $4.15. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VRTX.
Two candlestick patterns are matching today's price action, the Morning Doji Star and the White Candle which are both known as bullish patterns. The last time a Morning Doji Star showed up on January 5, 2012, VRTX gained 2.81% on the following trading day.
The market managed to break above the 50-day moving average at 180.56 today. Prices are trading close to the key technical resistance level at 183.39 (R1).
Though Vertex Pharmaceuticals is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Morning Doji Star" stand out. Its common bullish interpretation has been confirmed for Vertex Pharmaceuticals. Out of 1 times, VRTX closed higher 100.00% 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 100.00% with an average market move of 9.63%.