HUM closes within previous day's range
Humana Inc. (HUM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HUM finished the week 6.39% higher at 375.85 after losing $4.35 (-1.14%) today on low volume, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HUM as at Feb 14, 2020):
Friday's trading range has been $9.20 (2.42%), that's slightly below the last trading month's daily average range of $9.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for HUM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 369.93 (S1). Prices are trading close to the key technical resistance level at 381.04 (R1). After having been unable to move lower than 370.09 in the prior session, Humana found buyers again around the same price level today at 370.80. The last time this happened on Tuesday, HUM gained 4.67% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 381.04 where further buy 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 "Bearish Harami Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Humana. Out of 50 times, HUM closed higher 60.00% 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 66.00% with an average market move of 0.34%.