CINF ends the day indecisive
Cincinnati Financial Corporation (CINF) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CINF ended the month -10.41% lower at 58.95 after losing $1.62 (-2.67%) today, significantly underperforming the S&P 500 (0.48%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CINF as at May 29, 2020):
Friday's trading range has been $1.99 (3.34%), that's below the last trading month's daily average range of $2.94. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for CINF.
Although the market 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 accelerate should prices move above the nearby swing high at 62.60 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Cincinnati Financial. Out of 757 times, CINF closed higher 55.88% 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 58.65% with an average market move of 0.32%.