VSTM closes lower for the 3rd day in a row
Verastem Inc. (VSTM) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, VSTM finished Monday at 1.61 losing $0.06 (-3.59%), strongly underperforming the S&P 500 (1.59%). Today's close at 1.61 marks the lowest recorded closing price since January 7th. Closing below Thursday's low at 1.65, the market confirmed its breakout through the prior session low after trading up to $0.07 below it intraday.
Daily Candlestick Chart (VSTM as at Jul 06, 2020):
Monday's trading range has been $0.12 (7.1%), that's slightly above the last trading month's daily average range of $0.11. 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 higher than usual for VSTM.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on June 17th, VSTM gained 3.45% on the following trading day.
Verastem ran into sellers again today around 1.70 for the third trading day in a row after having found sellers at 1.70 in the previous session and at 1.70 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Verastem. Out of 103 times, VSTM closed higher 56.31% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.31% with an average market move of 1.56%.