AET climbs to highest close ever
Aetna Inc. (AET) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, AET finished the week 5.63% higher at 209.36 after gaining $0.13 (0.06%) today, outperforming the S&P 500 (-0.92%). Today's close at 209.36 marks the highest recorded closing price ever. Trading $0.70 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AET as at Nov 09, 2018):
Friday's trading range has been $1.56 (0.74%), that's below the last trading month's daily average range of $2.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AET. Prices continued to consolidate within a tight trading range between 207.71 and 210.12 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Bearish Hikkake Pattern showed up on Tuesday, AET actually gained 0.86% on the following trading day.
Unable to break through the key technical resistance level at 209.75 (R1), the market closed below it after spiking up to 210.12 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The share ran into sellers again today around 210.12 for the third trading day in a row after having found sellers at 209.70 in the prior session and at 209.75 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 200.56.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Aetna. Out of 452 times, AET closed higher 55.53% 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 61.73% with an average market move of 1.36%.