VSTM dominated by bulls lifting the market higher throughout the day
Verastem Inc. (VSTM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, VSTM ended Thursday at 2.56 gaining $0.28 (12.28%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 2.45, the share confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (VSTM as at Mar 26, 2020):
Thursday's trading range has been $0.30 (13.04%), that's slightly below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VSTM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, VSTM gained 10.10% on the following trading day.
Verastem managed to close above the 20-day moving average at 2.41 for the first time since March 10th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for Verastem. Out of 276 times, VSTM closed lower 54.35% 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 10 trading days, showing a win rate of 60.87% with an average market move of -1.18%.