VSTM closes -4.12% lower at 1.86
Verastem Inc. (VSTM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VSTM finished the week 7.51% higher at 1.86 after losing $0.08 (-4.12%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday.
Daily Candlestick Chart (VSTM as at May 22, 2020):
Friday's trading range has been $0.10 (5.26%), that's below the last trading month's daily average range of $0.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for VSTM.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 2.07 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 1.61 where further sell stops could get activated. Trading close to March's low at 1.50 we might see further downside momentum if potential sell stops at the level get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Verastem. Out of 640 times, VSTM closed lower 52.19% 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 55.16% with an average market move of 0.21%.