AFL dominated by bulls lifting the market higher throughout the day
AFLAC Incorporated (AFL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AFL ended the month -1.28% lower at 35.57 after gaining $0.28 (0.79%) today, slightly outperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $0.61 (1.74%), that's below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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. 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 Bullish Short Candle showed up on July 23rd, AFL actually lost -0.59% on the following trading day.
The market managed to close back above the 100-day moving average at 35.38. After having been unable to move lower than 34.96 in the prior session, the stock found buyers again around the same price level today at 35.04.
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 36.62 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 34.96 where further sell stops could get activated.
Among the 10 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 723 times, AFL closed higher 54.08% 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 57.12% with an average market move of 0.38%.