AET closes within previous day's range
Aetna Inc (AET) Technical Analysis Report for Oct 12, 2018
AET finished the week -1.33% lower at 201.01 after surging $2.06 (1.04%) today, slightly underperforming the S&P 500 (1.42%). This is the biggest single-day gain in over a month. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AET as at Oct 12, 2018):
Friday's trading range has been $2.14 (1.07%), that's slightly above the last trading month's daily average range of $2.07. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AET.
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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to break above the 50-day moving average at 200.12 today for the first time since May 11th. When this moving average was taken out the last time on May 11th, AET gained 1.80% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 203.36.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test September's nearby low at 197.95.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Aetna Inc. Out of 55 times, AET closed higher 50.91% 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 70.91% with an average market move of 2.07%.