AFL breaks back above 50-day moving average
AFLAC Incorporated (AFL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AFL ended the week -0.23% lower at 52.81 after gaining $0.35 (0.67%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 52.66, the stock confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (AFL as at Feb 14, 2020):
Friday's trading range has been $0.42 (0.8%), that's far below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AFL.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
AFLAC Incorporated managed to close back above the 50-day moving average at 52.71. When this moving average was crossed above the last time on Tuesday, AFL actually lost -1.02% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 53.35 where further buy stops could get activated. With prices trading close to this year's high at 53.46, upside momentum might speed up should the market be able to break out to new highs for the year. With prices trading close to this year's low at 51.52, downside momentum could accelerate should the share break out to new lows for the year. As prices are trading close to February's low at 51.85, downside momentum might speed up should AFL mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for AFLAC Incorporated. Out of 577 times, AFL closed higher 50.26% 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 59.97% with an average market move of 0.36%.