HIG closes within previous day's range
Hartford Financial Services Group Inc. (HIG) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HIG finished the week -1.46% lower at 58.64 after gaining $0.28 (0.48%) today, underperforming the S&P 500 (1.09%). Trading $0.38 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HIG as at Oct 11, 2019):
Friday's trading range has been $0.74 (1.26%), that's slightly below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HIG.
Prices are trading close to the key technical support level at 58.03 (S1). After spiking up to 59.33 during the day, the stock found resistance at the 50-day moving average at 59.09. The last time this happened on October 9, 2018, HIG lost -3.87% on the following trading day.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hartford Financial. Out of 557 times, HIG closed higher 55.48% 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 57.63% with an average market move of 1.04%.