CINF closes higher for the 2nd day in a row
Cincinnati Financial Corporation (CINF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CINF finished the week 2.11% higher at 115.21 after gaining $0.36 (0.31%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 115.21 marks the highest recorded closing price since October 24, 2019. Trading up to $0.31 lower after the open, Cincinnati Financial managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 5th, CINF gained 4.47% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CINF as at Feb 14, 2020):
Friday's trading range has been $0.91 (0.79%), that's far below the last trading month's daily average range of $1.68. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CINF. Prices continued to consolidate within a tight trading range between 112.73 and 115.52 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical support level at 114.00 (S1). Prices are trading close to the key technical resistance level at 116.26 (R1). After having been unable to move above 115.45 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 115.26.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 115.45 where further buy stops could get activated. 2019's high at 118.19 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Cincinnati Financial. Out of 757 times, CINF closed higher 55.61% 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 58.92% with an average market move of 0.55%.