HIG fails to close above 20-day moving average
Hartford Financial Services Group Inc. (HIG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HIG finished the week -1.19% lower at 59.10 after edging lower $0.14 (-0.24%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.26 higher after the open, Hartford Financial was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 4th, HIG actually gained 2.93% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HIG as at Feb 14, 2020):
Friday's trading range has been $0.65 (1.1%), that's below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HIG. Prices continued to consolidate within a tight trading range between 58.61 and 59.91 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After spiking up to 59.43 during the day, the share found resistance at the 20-day moving average at 59.30. After having been unable to move above 59.33 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 59.43.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 59.91 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 58.61 where further sell stops might get activated. With prices trading close to this year's low at 57.68, downside momentum could accelerate should the stock break out to new lows for the year. As prices are trading close to February's high at 60.41, upside momentum might speed up should HIG mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for Hartford Financial. Out of 197 times, HIG closed lower 58.38% of the time on the next trading day after the market condition occurred.