Stock Price Trends

Varex Imaging Corp (VREX)

Varex Imaging Corporation designs and manufactures X-ray imaging components. The company is headquartered in Salt Lake City, Utah.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 36.72% per annum.
  • VREX price at the close of November 19, 2024 was $14.56 and was higher than the top border of the primary price channel by $0.51 (3.64%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1,175.20% per annum.
  • VREX price at the close of November 19, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of VREX price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: May 5, 2023
End date: November 4, 2024

a = 4.7719

b = -0.0013

s = 0.0799

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -36.72%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0799) – 1
= 37.68%

May 5, 2023 calculations

Top border of price channel:

Exp(Y869)
= Exp(a + b × X869 + 2 × s)
= Exp(a + b × 1,262 + 2 × s)
= Exp(4.7719 + -0.0013 × 1,262 + 2 × 0.0799)
= Exp(3.3496)
= $28.49

Bottom border of price channel:

Exp(Y869)
= Exp(a + b × X869 – 2 × s)
= Exp(a + b × 1,262 – 2 × s)
= Exp(4.7719 + -0.0013 × 1,262 – 2 × 0.0799)
= Exp(3.0298)
= $20.69

November 4, 2024 calculations

Top border of price channel:

Exp(Y1,246)
= Exp(a + b × X1,246 + 2 × s)
= Exp(a + b × 1,811 + 2 × s)
= Exp(4.7719 + -0.0013 × 1,811 + 2 × 0.0799)
= Exp(2.6613)
= $14.31

Bottom border of price channel:

Exp(Y1,246)
= Exp(a + b × X1,246 – 2 × s)
= Exp(a + b × 1,811 – 2 × s)
= Exp(4.7719 + -0.0013 × 1,811 – 2 × 0.0799)
= Exp(2.3415)
= $10.40

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 36.72% per annum.
  • VREX price at the close of November 19, 2024 was $14.56 and was higher than the top border of the primary price channel by $0.51 (3.64%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: October 3, 2024
End date: November 12, 2024

a = -10.0120

b = 0.0070

s = 0.0226

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0070) – 1
= 1,175.20%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0226) – 1
= 9.45%

October 3, 2024 calculations

Top border of price channel:

Exp(Y1,224)
= Exp(a + b × X1,224 + 2 × s)
= Exp(a + b × 1,779 + 2 × s)
= Exp(-10.0120 + 0.0070 × 1,779 + 2 × 0.0226)
= Exp(2.4407)
= $11.48

Bottom border of price channel:

Exp(Y1,224)
= Exp(a + b × X1,224 – 2 × s)
= Exp(a + b × 1,779 – 2 × s)
= Exp(-10.0120 + 0.0070 × 1,779 – 2 × 0.0226)
= Exp(2.3505)
= $10.49

November 12, 2024 calculations

Top border of price channel:

Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,819 + 2 × s)
= Exp(-10.0120 + 0.0070 × 1,819 + 2 × 0.0226)
= Exp(2.7197)
= $15.18

Bottom border of price channel:

Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,819 – 2 × s)
= Exp(-10.0120 + 0.0070 × 1,819 – 2 × 0.0226)
= Exp(2.6295)
= $13.87

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1,175.20% per annum.
  • VREX price at the close of November 19, 2024 was inside the secondary price channel.