Don't Ignore This Chart!

Verisk Analytics Leads with an Upside Breakout


Verisk (VRSK) was not immune to the volatility of the last two weeks, but the stock held up well during the dip and outperformed during the bounce. First, notice that the stock ultimately held the mid May low and 200-day SMA during the late June dip. Second, notice that the stock exceeded the 22-June high with the surge over the last five days. Stocks and ETFs trading above their June highs right now show relative "chart" strength. 

The overall pattern and two key moving averages also point to an uptrend. First, the stock surged from early February to early April and then consolidated with an extended trading range. VRSK then broke out of this range and this breakout signals a continuation of the prior advance. Second, the 50-day moving average is above the 200-day moving average, and the stock is above both moving averages. We can also throw in a relative performance breakout as the price relative (VRSK:RSP ratio) broke out over the last two weeks. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus