AIZ still stuck within tight trading range
Assurant Inc. (AIZ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AIZ finished the month 4.05% higher at 107.47 after gaining $2.19 (2.08%) today, notably outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 106.20, the market confirmed its breakout through the previous session high after trading up to $1.33 above it intraday.
Daily Candlestick Chart (AIZ as at Jul 31, 2020):
Friday's trading range has been $2.39 (2.27%), that's slightly above the last trading month's daily average range of $2.29. 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 AIZ. Prices continued to consolidate within a tight trading range between 104.20 and 107.90 where it has been caught now for the whole last trading week.
In spite of a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 30th, AIZ actually lost -2.15% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 107.90 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 107.90 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Assurant. Out of 67 times, AIZ closed higher 58.21% 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 65.67% with an average market move of 1.24%.