HIG runs into sellers again around 35.12
Hartford Financial Services Group Inc. (HIG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HIG finished Thursday at 34.94 gaining $1.73 (5.21%), significantly underperforming the S&P 500 (6.24%). Trading up to $1.30 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Mar 26, 2020):
Thursday's trading range has been $2.72 (8.07%), that's below the last trading month's daily average range of $4.06. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HIG. Prices continued to consolidate within a tight trading range between 28.84 and 35.70 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 35.70 (R1). After having been unable to move above 35.70 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 35.12. The last time this happened on March 13th, HIG lost -21.21% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 35.70 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Hartford Financial. Out of 795 times, HIG closed higher 52.83% 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 56.35% with an average market move of 0.27%.