CINF closes within prior day's range after lackluster session
Cincinnati Financial Corporation (CINF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CINF ended the week 16.39% higher at 57.32 after edging lower $0.13 (-0.23%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CINF as at May 22, 2020):
Friday's trading range has been $1.83 (3.18%), that's far below the last trading month's daily average range of $3.31. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CINF.
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, one bearish candlestick pattern matches today's price action, the Hanging Man.
After having been unable to move above 57.87 in the previous session, Cincinnati Financial ran into sellers again around the same price level today, failing to move higher than 57.58. The last time this happened on May 14th, CINF lost -2.44% on the following trading day.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 57.87 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cincinnati Financial. Out of 89 times, CINF closed higher 55.06% 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 59.55% with an average market move of 0.56%.