ANAT closes above its opening price after recovering from early selling pressure
American National Insurance Company (ANAT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ANAT ended Thursday at 78.55 gaining $5.44 (7.44%) on high volume, notably outperforming the S&P 500 (6.24%). Trading up to $2.79 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 13th, ANAT actually lost -8.42% on the following trading day. Closing above Wednesday's high at 76.69, the stock confirmed its breakout through the previous session high after trading up to $2.13 above it intraday.
Daily Candlestick Chart (ANAT as at Mar 26, 2020):
Thursday's trading range has been $7.19 (9.66%), that's slightly above the last trading month's daily average range of $5.96. 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 higher than usual for ANAT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 75.71 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 82.55 (R1). After having been unable to move lower than 71.82 in the prior session, the share found buyers again around the same price level today at 71.63.
While American National is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 82.55 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for American National. Out of 446 times, ANAT closed lower 57.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.78% with an average market move of -0.27%.