AIZ closes above its opening price after recovering from early selling pressure
Assurant Inc. (AIZ) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AIZ finished the week 11.26% higher at 101.37 after edging higher $0.29 (0.29%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.55 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AIZ as at May 22, 2020):
Friday's trading range has been $2.57 (2.55%), that's far below the last trading month's daily average range of $4.02. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AIZ. Prices continued to consolidate within a tight trading range between 98.57 and 102.59 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 99.31 during the day, the stock found support at the 50-day moving average at 100.12. The last time this happened on November 5, 2019, AIZ gained 1.09% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 102.59 where further buy stops could get activated. As prices are trading close to May's high at 105.50, upside momentum might accelerate should Assurant mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Assurant. Out of 61 times, AIZ closed higher 63.93% 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 68.85% with an average market move of 1.19%.