AFL finds buyers around 36.61 for the third day in a row
AFLAC Incorporated (AFL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AFL finished Wednesday at 37.21 gaining $0.52 (1.42%), significantly outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $1.13 (3.07%), that's above the last trading month's daily average range of $0.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AFL. Prices continued to consolidate within a tight trading range between 36.51 and 37.74 where it has been caught now for the last three trading days.
The stock managed to close back above the 20-day moving average at 36.87. Prices are trading close to the key technical resistance level at 37.90 (R1). The market found buyers again today around 36.61 for the third trading day in a row after having found demand at 36.51 in the prior session and at 36.60 two days ago. The last time this happened on September 9th, AFL actually lost -2.24% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 36.51 where further sell stops could get activated. As prices are trading close to September's high at 38.29, upside momentum might accelerate should the share mark new highs for the month. As prices are trading close to September's low at 35.90, downside momentum could speed up should AFLAC Incorporated mark new lows for the month.
Among the five 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 497 times, AFL closed higher 59.36% 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 59.76% with an average market move of 0.48%.