UNM closes above its opening price after recovering from early selling pressure
Unum Group (UNM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
UNM finished the month 3.86% higher at 17.23 after edging higher $0.07 (0.41%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.24 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UNM as at Jul 31, 2020):
Friday's trading range has been $0.36 (2.1%), that's far below the last trading month's daily average range of $0.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UNM.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on March 13th, UNM actually lost -19.73% on the following trading day.
Prices are trading close to the key technical support level at 16.86 (S1). Prices are trading close to the key technical resistance level at 17.72 (R1). After having been unable to move lower than 16.95 in the prior session, the market found buyers again around the same price level today at 16.90.
Unum Group shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Unum Group. Out of 25 times, UNM closed higher 52.00% 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 60.00% with an average market move of 0.20%.