Conclusion, Investment Implications, Strategy
Aflac Incorporated (AFL) appears to be resuming its mid March advance following almost 3 months of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently near $37.50, would target an eventual, additional 43% rise to $54.50 per share. This is an Asbury Momentum idea.
Analysis and Rationale
Aflac Incorporated (AFL), through its subsidiaries, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers cancer, medical, income support, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products. The Aflac U.S. segment provides cancer, accident, short-term disability, critical illness, hospital indemnity, dental, vision, and term and whole life insurance products in the United States. It sells its products through sales associates, brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. The company was founded in 1955 and is headquartered in Columbus, Georgia.
Chart 1 below plots AFL daily since January and shows that price is currently breaking out higher from almost 3 months of sideways investor indecision from the mid March lows. A sustained rise above the upper boundary of the indecision area, currently near $37.50, would target an eventual, additional 43% rise to $54.50 per share.
Chart 1
Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $36.25 area, a long entry price of $38.00 would provide a 1:9.4 risk/reward ratio (risking $1.00 to make $9.40) with an initial risk of 4.6%.
Table 1
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