ANTM closes higher for the 2nd day in a row
Anthem Inc. (ANTM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ANTM ended the month -10.58% lower at 262.98 after gaining $3.71 (1.43%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $3.01 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 262.29, the market confirmed its breakout through the prior session high after trading up to $2.31 above it intraday.
Daily Candlestick Chart (ANTM as at Jun 30, 2020):
Tuesday's trading range has been $7.86 (3.03%), that's slightly below the last trading month's daily average range of $9.52. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ANTM. Prices continued to consolidate within a tight trading range between 253.27 and 266.00 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
Buyers managed to take out the key technical resistance level at 262.24 (now S1), which is likely to act as support going forward. The last time this happened on June 8th, ANTM actually lost -3.19% on the following trading day. After spiking up to 264.60 during the day, Anthem found resistance at the 100-day moving average at 263.80. After having been unable to move lower than 257.36 in the previous session, the stock found buyers again around the same price level today at 256.74.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 264.65 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 253.27 where further sell stops might get triggered. As prices are trading close to June's low at 250.88, downside momentum could speed up should ANTM mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Anthem. Out of 22 times, ANTM closed higher 54.55% 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 63.64% with an average market move of 1.54%.