HUN closes higher for the 2nd day in a row
Huntsman Corporation (HUN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HUN ended the month -0.99% lower at 17.97 after gaining $0.17 (0.96%) today, underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HUN as at Jun 30, 2020):
Tuesday's trading range has been $0.49 (2.78%), that's below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for HUN. Prices continued to consolidate within a tight trading range between 17.51 and 18.14 where it has been caught now for the last three trading days.
Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 15th, HUN gained 3.01% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 18.14 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 18.06.
Huntsman shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 18.14 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Huntsman. Out of 542 times, HUN closed higher 53.51% 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 55.72% with an average market move of 1.18%.