Aflac Has a Cyclical Long-term Upside Price Pattern

Aflac (AFL), the well-known insurance company with the quacking duck commercials, is on a long-term upside.

The stock exhibits a cyclical pattern, which is best seen by plotting the closing prices on the log scale. Since September 1998 AFL has completed four price cycles.

The current cycle looks to have made a double top and is headed to the downside. But the chart is tricky because the downside is forming a falling wedge, which often ends with an upside move. The downside has support at $43 and that could be the start of the next price cycle.

Posted March 23, 2006.