HUM dominated by bulls lifting the market higher throughout the day
Humana Inc. (HUM) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
HUM finished the week 1.54% higher at 247.82 after gaining $5.60 (2.31%) today, strongly outperforming the S&P 500 (-0.58%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 245.62, the stock confirmed its breakout through the previous session high after trading up to $3.88 above it intraday.
Daily Candlestick Chart (HUM as at May 17, 2019):
Friday's trading range has been $8.99 (3.72%), that's above the last trading month's daily average range of $7.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for HUM.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on Wednesday, HUM actually lost -0.60% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 247.06 for the first time since April 26th. After having been unable to move lower than 241.31 in the prior session, Humana found buyers again around the same price level today at 240.51.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 249.66 where further buy stops might get triggered. As prices are trading close to May's high at 254.00, upside momentum could speed up should the share mark new highs for the month.
Among the 10 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 Humana. Out of 779 times, HUM closed higher 52.89% 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 59.69% with an average market move of 1.00%.