HIG still stuck within tight trading range
Hartford Financial Services Group Inc. (HIG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HIG ended the month 0.68% higher at 38.55 after edging higher $0.22 (0.57%) today, underperforming the S&P 500 (1.54%). Closing above Monday's high at 38.53, Hartford Financial confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (HIG as at Jun 30, 2020):
Tuesday's trading range has been $0.87 (2.28%), that's far below the last trading month's daily average range of $1.71. 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 37.01 and 39.01 where it has been caught now for the whole last trading week.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 40.10 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 37.01 where further sell stops might get triggered.
Among the four 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 798 times, HIG closed higher 52.76% 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 57.39% with an average market move of 0.55%.