CINF dominated by bulls lifting the market higher throughout the day
Cincinnati Financial Corporation (CINF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CINF finished the month 8.62% higher at 64.03 after edging higher $0.28 (0.44%) today, strongly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 63.86, the stock confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (CINF as at Jun 30, 2020):
Tuesday's trading range has been $1.43 (2.27%), that's far below the last trading month's daily average range of $2.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CINF.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on April 14th, CINF actually lost -4.78% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Cincinnati Financial. Out of 353 times, CINF closed higher 50.71% 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 0.78%.