VZ still stuck within tight trading range
Verizon Communications Inc. (VZ) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
VZ finished Wednesday at 59.10 gaining $0.06 (0.1%), slightly underperforming the Dow Indu. (0.31%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VZ as at Jan 15, 2020):
Wednesday's trading range has been $0.55 (0.93%), that's slightly below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VZ. Prices continued to consolidate within a tight trading range between 58.76 and 59.42 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 10th, VZ actually gained 0.27% on the following trading day.
Prices are trading close to the key technical support level at 58.76 (S1). Prices are trading close to the key technical resistance level at 59.21 (R1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 58.76 where further sell stops might 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 Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Verizon Communications. Out of 697 times, VZ closed higher 52.08% 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 two trading days, showing a win rate of 52.37% with an average market move of 0.02%.