ANTM pushes through key technical resistance level
Anthem Inc. (ANTM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ANTM ended Wednesday at 263.62 gaining $3.47 (1.33%), strongly outperforming the S&P 500 (-0.46%). Trading up to $3.30 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 previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ANTM as at Sep 16, 2020):
Wednesday's trading range has been $7.17 (2.74%), that's slightly below the last trading month's daily average range of $7.74. Weekly volatility is also lower, being slightly 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 258.52 and 269.20 where it has been caught now for the last three trading days.
After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 263.27 (now S1), which is likely to act as support going forward. The last time this happened on Monday, ANTM actually lost -2.05% on the following trading day. Prices are trading close to the key technical resistance level at 269.05 (R1). The market found buyers again today around 258.52 for the third trading day in a row after having found demand at 258.87 in the previous session and at 258.99 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 269.20 where further buy stops could get triggered. Trading close to July's low at 253.75 we might see further downside momentum if potential sell stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Anthem. Out of 214 times, ANTM closed higher 53.27% 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 62.62% with an average market move of 1.03%.