VZ closes within previous day's range after lackluster session
Verizon Communications Inc. (VZ) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VZ finished the week -1.11% lower at 54.10 after gaining $0.13 (0.24%) today on high volume, slightly outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.29 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, VZ actually lost -2.40% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (VZ as at May 22, 2020):
Friday's trading range has been $0.62 (1.15%), that's far below the last trading month's daily average range of $0.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VZ.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test April's close-by low at 52.16.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Verizon Communications. Out of 220 times, VZ closed lower 53.18% of the time on the next trading day after the market condition occurred.