VRTX closes above its opening price after recovering from early selling pressure
Vertex Pharmaceuticals Incorporated (VRTX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VRTX finished the week 1.57% higher at 243.82 after gaining $3.73 (1.55%) today, notably outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $2.64 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, VRTX actually lost -2.26% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VRTX as at Feb 14, 2020):
Friday's trading range has been $5.85 (2.42%), that's slightly below the last trading month's daily average range of $5.97. 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 VRTX.
Prices are trading close to the key technical resistance level at 244.65 (R1). After having been unable to move above 245.39 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 244.45.
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 249.00 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Vertex Pharmaceuticals. Out of 778 times, VRTX closed lower 52.57% of the time on the next trading day after the market condition occurred.