BZ Chart Of The Day: Is Aflac About To Rally?

Shares of Aflac Incorporated AFL are oversold and at support, which means they may rally.

Every stock has an average or typical trading range that it spends most of its time in. But if sellers are very aggressive, they could push it beneath the range. Traders refer to this dynamic as being "oversold."

This is important because oversold stocks tend to reverse.

There is a momentum indicator at the bottom of the following chart. If the blue line crosses below the lower red line, it indicates oversold conditions. And as you can see that’s the case now.

Traders will be expecting a reversion or reversal. They could push the price higher.

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Posted In: TechnicalsTrading Ideas