VRTX pushes through key technical resistance level
Vertex Pharmaceuticals Incorporated (VRTX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
VRTX finished the month 0.82% higher at 290.31 after gaining $5.13 (1.8%) today, slightly underperforming the Nasdaq 100 (1.96%). Trading up to $4.11 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, VRTX actually lost -3.05% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (VRTX as at Jun 30, 2020):
Tuesday's trading range has been $8.79 (3.06%), that's slightly above the last trading month's daily average range of $8.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VRTX.
Buyers managed to take out the key technical resistance level at 288.52 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 299.21 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 280.89 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Vertex Pharmaceuticals. Out of 286 times, VRTX closed lower 55.24% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 50.35% with an average market move of 0.00%.