Verona Pharma plc Stock Analysis
Technical stock analysis for 18 January 2019
Verona Pharma plc fell by -7.13% in the last day from $6.73 to $6.25 and has now fallen 3 days in a row. The price has fallen in 6 of the last 10 days and is down by -37.44% for this period. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -8 220 shares and in total 10 487 shares bought and sold for approximately $65 543.80.
Close price at the end of the last trading day (Friday, 18th Jan 2019) of the VRNA stock was $6.25. This is 7.13% less than the trading day before Thursday, 17th Jan 2019.
During day the stock fluctuated 7.72% from a day low at $6.22 to a day high of $6.70.
30 day high of the VRNA stock price was $10.69 and low was $5.65.
90 day high was $13.38 and low was $5.65.
52 week high for the Verona Pharma plc - $25.55 and low - $5.65.
Verona Pharma plc has broken the very wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($7.26) are considered to be a "second chance" to get out. According to the fan-theory $4.63 will represent the new bottom line of the next trend, but it is far too early to say this for certain.
There are few to none technical positive signals at the moment. Verona Pharma plc holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $7.60 and $9.59. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Friday January 11, 2019, which indicates further falls until a new bottom pivot has been found. Volume fell along with the price during the last trading day which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk. The very low volume increases the risk and reduces the other technical signals issued.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 28 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
This stock may move much during a day (volatility) and with periodic low trading volume this stock is considered to be "high risk". During the last day, the stock moved $0.48 between high and low, or 7.72%. For the last week the stock has had a daily average volatility of 13.98%.
Verona Pharma plc is oversold on RSI14 (28). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
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Verona Pharma plc holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.
|VRNA $6.25 $-0.48(-7.13%)|
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