AFL dominated by bulls lifting the market higher throughout the day
AFLAC Incorporated (AFL) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
AFL finished Thursday at 52.07 gaining $0.79 (1.54%) on low volume, notably outperforming the S&P 500 (0.25%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AFL as at Aug 15, 2019):
Thursday's trading range has been $0.75 (1.46%), that's below the last trading month's daily average range of $1.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AFL.
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. After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Tuesday, AFL actually lost -3.10% on the following trading day.
Prices are trading close to the key technical resistance level at 52.29 (R1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 51.25 where further sell stops might get activated. As prices are trading close to August's high at 53.38, upside momentum could speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for AFLAC Incorporated. Out of 712 times, AFL closed higher 55.06% 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 58.85% with an average market move of 0.57%.