UNM breaks back above 20-day moving average
Unum Group (UNM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
UNM ended Wednesday at 18.65 gaining $0.46 (2.53%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (UNM as at Sep 16, 2020):
Wednesday's trading range has been $0.90 (4.93%), that's above the last trading month's daily average range of $0.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UNM. Prices continued to consolidate within a tight trading range between 18.07 and 19.29 where it has been caught now for the whole last trading week.
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.
The stock managed to close back above the 20-day moving average at 18.57. When this moving average was crossed above the last time on Monday, UNM actually lost -3.40% on the following trading day. Prices are trading close to the key technical resistance level at 19.14 (R1). The market ran into sellers again today around 19.05 for the third trading day in a row after having found sellers at 19.07 in the prior session and at 18.97 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 19.07 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 18.07 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Unum Group. Out of 92 times, UNM closed higher 50.00% 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 60.87% with an average market move of 0.64%.