AFL runs into sellers around 34.94 for the third day in a row
AFLAC Incorporated (AFL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AFL finished the week 5.18% higher at 34.70 after edging lower $0.15 (-0.43%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AFL as at May 22, 2020):
Friday's trading range has been $0.56 (1.6%), that's far below the last trading month's daily average range of $1.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AFL. Prices continued to consolidate within a tight trading range between 33.31 and 35.13 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 35.13 (R1). AFLAC Incorporated ran into sellers again today around 34.94 for the third trading day in a row after having found sellers at 34.96 in the previous session and at 35.10 two days ago. The last time this happened on April 3rd, AFL actually gained 8.67% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 35.10 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 33.31 where further sell stops could get triggered. As prices are trading close to May's high at 36.87, upside momentum might accelerate should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for AFLAC Incorporated. Out of 717 times, AFL closed higher 53.97% 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 57.32% with an average market move of 0.34%.