VRTX slips to lowest close since March 8th
Vertex Pharmaceuticals Incorporated (VRTX) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, VRTX finished Tuesday at 179.74 losing $2.75 (-1.51%), strongly underperforming the Nasdaq 100 (0.34%). Today's close at 179.74 marks the lowest recorded closing price since March 8th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 180.24, Vertex Pharmaceuticals confirmed its breakout through the prior session low after trading up to $0.63 below it intraday.
Daily Candlestick Chart (VRTX as at Apr 16, 2019):
Tuesday's trading range has been $5.19 (2.83%), that's above the last trading month's daily average range of $4.13. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VRTX.
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. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
The market closed below the 100-day moving average at 180.50 for the first time since March 8th. When this moving average was crossed below the last time on March 8th, VRTX actually gained 1.84% on the following trading day. After having been unable to move lower than 180.24 in the previous session, the share found buyers again around the same price level today at 179.61.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling might move prices lower should the market test March's nearby low at 173.59.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Vertex Pharmaceuticals. Out of 71 times, VRTX closed higher 57.75% 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 61.97% with an average market move of 1.51%.