VRTX breaks back above 100-day moving average
Vertex Pharmaceuticals Incorporated (VRTX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
VRTX finished Thursday at 224.49 gaining $14.40 (6.85%) on low volume, notably outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 224.00, the share confirmed its breakout through the prior session high after trading up to $1.43 above it intraday.
Daily Candlestick Chart (VRTX as at Mar 26, 2020):
Thursday's trading range has been $16.00 (7.63%), that's slightly below the last trading month's daily average range of $16.06. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VRTX. Prices continued to consolidate within a tight trading range between 199.52 and 227.43 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on March 13th, VRTX actually lost -9.55% on the following trading day. Notwithstanding a weak opening Vertex Pharmaceuticals managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 100-day moving average at 223.37. Prices are trading close to the key technical resistance level at 227.43 (R1). The market found buyers again today around 209.43 for the third trading day in a row after having found demand at 209.51 in the prior session and at 207.84 two days ago.
VRTX shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 249.85, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Vertex Pharmaceuticals. Out of 469 times, VRTX closed lower 54.80% of the time on the next trading day after the market condition occurred.