HUM breaks back above 50-day moving average
Humana Inc. (HUM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HUM ended the month -5.58% lower at 387.75 after gaining $8.39 (2.21%) today, outperforming the S&P 500 (1.54%). Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (HUM as at Jun 30, 2020):
Tuesday's trading range has been $10.30 (2.7%), that's slightly below the last trading month's daily average range of $11.83. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HUM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close back above the 50-day moving average at 383.64 for the first time since June 17th. When this moving average was crossed above the last time on April 8th, HUM gained 1.38% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 412.70, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Humana. Out of 143 times, HUM closed higher 53.15% 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 66.43% with an average market move of 1.85%.