AFL finds buyers at key support level
AFLAC Incorporated (AFL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AFL ended Thursday at 35.77 losing $0.96 (-2.61%) on high volume, strongly underperforming the S&P 500 (6.24%). Trading $4.02 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 20th, AFL lost -3.89% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AFL as at Mar 26, 2020):
Thursday's trading range has been $6.44 (17.31%), that's far above the last trading month's daily average range of $3.31. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AFL.
After trading down to 34.78 earlier during the day, the stock bounced off the key technical support level at 34.85 (S1). The failure to close below the support might increase that levels significance as support going forward.
Although AFLAC Incorporated is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for AFLAC Incorporated. Out of 499 times, AFL closed higher 60.12% 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 60.12% with an average market move of 0.45%.