Aflac Incorporated (NASDAQ: AFL) stock is trading in the bullish territory near the critical resistance level of $70.30. Moreover, the stock’s recent trading sessions have showcased a positive outlook, with a consistent uptrend and strong defense of its lower trendline. Trading within a symmetrical triangle pattern, the stock’s sustained upward momentum reflects market confidence and active buyer participation. This pattern indicates a period of consolidation, with narrowing price movements between converging trendlines, further highlighting the stock’s potential for future price volatility. Overall, these factors indicate a promising investment opportunity.
However, there were multiple patterns on the charts, and a double top pattern was noted, which suggested an upcoming correction if the price breaks the immediate neckline below $65. On the other hand, AFL stock broke the trendline of the symmetrical triangle pattern in the last trading sessions and showed a bounce back from the 20-day EMA, indicating buyers’ presence.
Moreover, this bullish move suggests an upcoming range breakout above $70.30 in the following sessions, based on the consecutive buying by bulls in the past trading sessions. The ongoing price action favors buyers, and based on the hammer candlestick formed on the 50-day EMA mark and follow-on buying noted in the next candle, the presence of bulls in the market is evident.
Aflac Inc. is a holding company involved in supplemental health and life insurance, which is marketed and administered through its subsidiary, American Family Life Assurance Company of Columbus (Aflac). The Company’s insurance business consists of two segments: Aflac Japan and Aflac U.S. Aflac Japan is designed to help consumers pay for medical and non-medical costs not reimbursed under Japan’s national health insurance system.
Daily Charts Shows Bulls Preparing For a Move
At press time, AFL stock was traded at $69.12 with an intraday gain of 1.08%, indicating bullish movement in the last trading session. Moreover, the trading volume was noted at 1.489 million in the intraday session, and the market cap of AFL is $41.764 billion.
On the daily charts, investors eagerly await AFL stock to close above $70 for confirmation to initiate new long positions.
Short Term Charts Shows End of Correction
On the 4-hour charts, AFL stock shows bullish dominance, and the price is at a make-or-break level. Above $70.30, the price enters into the overbought zone, but if rejected, then the stock will consolidate in the neutral range.
The Relative strength index (RSI) curve shows a sharp upward move, floating near 65 in the overbought region and showing positive divergence.
The MACD indicator exhibits a bullish crossover, accompanied by green bars on the histogram, indicating a positive outlook.
Conclusion:
AFL stock has broken above the trendline of the symmetrical triangle pattern, signaling a positive outlook. The incremental moves witnessed in recent trading sessions further reinforce this positive momentum.
Technical Levels:
Support Levels:$65
Resistance Levels:$72 and $74
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/30/aflac-inc-nyse-afl-forming-a-double-top-pattern-what-next/