HUM closes above its opening price after recovering from early selling pressure
Humana Inc. (HUM) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HUM ended Thursday at 345.21 gaining $1.09 (0.32%), slightly outperforming the S&P 500 (0.15%). Today's close at 345.21 marks the highest recorded closing price since November 7, 2018. Trading up to $2.88 lower after the open, the stock 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.
Daily Candlestick Chart (HUM as at Dec 05, 2019):
Thursday's trading range has been $5.44 (1.58%), that's slightly below the last trading month's daily average range of $6.70. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HUM.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on November 11th, HUM gained 0.86% on the following trading day.
After trading down to 341.24 earlier during the day, the market bounced off the key technical support level at 341.99 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 342.01 in the prior session, Humana found buyers again around the same price level today at 341.24.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 346.80 where further buy stops could get triggered. 2018's high at 355.88 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Humana. Out of 598 times, HUM closed higher 53.01% 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 61.04% with an average market move of 1.17%.