AIZ closes within previous day's range after lackluster session
Assurant Inc. (AIZ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AIZ finished Wednesday at 117.73 edging higher $0.47 (0.4%), outperforming the S&P 500 (-0.46%). Trading $1.62 higher after the open, Assurant was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AIZ as at Sep 16, 2020):
Wednesday's trading range has been $2.15 (1.82%), that's below the last trading month's daily average range of $2.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AIZ.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Homing Pigeon showed up on September 9th, AIZ actually lost -2.46% on the following trading day.
After having been unable to move lower than 117.18 in the previous session, the share found buyers again around the same price level today at 117.43.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 121.37.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 117.18 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Assurant. Out of 69 times, AIZ closed higher 55.07% 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 66.67% with an average market move of 1.52%.