CINF breaks below Thursday's low
Cincinnati Financial Corporation (CINF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CINF finished the month 21.71% higher at 77.93 after losing $1.88 (-2.36%) today on high volume, strongly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 78.32, the share confirmed its breakout through the previous session low after trading up to $1.12 below it intraday.
Daily Candlestick Chart (CINF as at Jul 31, 2020):
Friday's trading range has been $2.82 (3.55%), that's slightly above the last trading month's daily average range of $2.64. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CINF.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cincinnati Financial. Out of 279 times, CINF closed higher 53.41% 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 57.71% with an average market move of 0.33%.