VZ closes below its opening price unable to hold early session gains
Verizon Communications Inc. (VZ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
VZ finished Wednesday at 60.37 losing $0.23 (-0.38%), underperforming the Dow Indu. (0.13%). Trading $0.40 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 9th, VZ lost -0.85% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VZ as at Sep 16, 2020):
Wednesday's trading range has been $0.62 (1.02%), that's slightly below the last trading month's daily average range of $0.77. 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 lower than usual for VZ.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 61.10 where further buy stops might get activated. With prices trading close to this year's high at 61.50, upside momentum could speed up should Verizon Communications be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Verizon Communications. Out of 464 times, VZ closed higher 54.53% 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 55.17% with an average market move of 0.61%.