CINF finds buyers again around 76.09
Cincinnati Financial Corporation (CINF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CINF ended Wednesday at 77.20 gaining $1.22 (1.61%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CINF as at Sep 16, 2020):
Wednesday's trading range has been $1.79 (2.35%), that's slightly below the last trading month's daily average range of $2.01. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CINF.
After moving lower in the previous session, the share managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 77.29 (R1), the market closed below it after spiking up to 77.88 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 75.79 in the previous session, Cincinnati Financial found buyers again around the same price level today at 76.09. The last time this happened on September 4th, CINF actually lost -2.38% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 78.87.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 78.89 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 75.79 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Cincinnati Financial. Out of 47 times, CINF closed higher 53.19% 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 76.60% with an average market move of 1.69%.