HIG still stuck within tight trading range
Hartford Financial Services Group Inc. (HIG) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
HIG ended Monday at 38.87 gaining $0.58 (1.51%), notably outperforming the S&P 500 (0.38%). Trading up to $0.69 lower after the open, Hartford Financial 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HIG as at Jun 01, 2020):
Monday's trading range has been $1.24 (3.21%), that's below the last trading month's daily average range of $1.52. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HIG. Prices continued to consolidate within a tight trading range between 37.80 and 40.25 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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on May 20th, HIG gained 6.00% on the following trading day.
After having been unable to move lower than 37.80 in the previous session, the market found buyers again around the same price level today at 37.91.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 40.25 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 37.80 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Hartford Financial. Out of 797 times, HIG closed higher 52.82% 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 57.47% with an average market move of 0.55%.