AFLAC: Bullish Harami Hints at a Turn in the Pond

Let’s talk Bullish Harami — a subtle but trustworthy sign that market mood may be shifting. Characterized by a small-bodied candle (often green or white) nested entirely within the body of the previous large red candle, the Bullish Harami whispers reversal without shouting. It shows hesitation after a downtrend, signaling that sellers are losing steam.

As Steve Nison, the father of modern candlestick charting, notes: “The Harami is an alert — not always a signal to act, but always a signal to pay attention.”

If you're new to recognizing a Harami on the charts, here's what you're scanning for:

Notice how the second candle’s body is fully contained by the first? This shrinking move often marks the exhaustion of sellers and the early stirrings of buyer interest. In practical trading terms, it behaves like a coiled spring — quiet tension ahead of potential motion.

Now, let’s anchor this textbook pattern to the real-world market. Below is a real-time chart of Aflac, where the Bullish Harami is forming in a clean downtrend — just where we want to see it.

For those newer to the ticker, Aflac Incorporated (AFL) is a major player in supplemental insurance — duck mascot and all. Listed on the NYSE, AFL often moves in rhythm with financial sector sentiment, and its price action reflects both macro trends and interest rate sensitivity.

Zooming into this chart, we see a red candle marking a continuing slide — and then, the smaller green candle nestling within it. That’s the Bullish Harami doing exactly what it does best: signaling a loss of seller momentum. Volume tapers slightly, and the body of the green candle reflects buyers cautiously re-entering the cycle without widespread conviction just yet. It’s a pause. But a telling one.

Reading the pattern contextually here, we’re witnessing price at a short-term support level, previously tested in April. That double-touch adds a psychological line in the sand. Traders watching this Harami know that if the next candle confirms upward — especially with a close above the midpoint of the red candle — it strengthens the road map for a potentially bullish swing.

So, how do traders approach this pattern? While we don’t give advice, educationally speaking, many candlestick-focused strategies focus on confirmation. Stops are typically parked below the low of the pattern, and conservative traders may wait for a prior resistance break before entering any move. As Gregory Morris notes, “The Harami is like a yellow light at a major intersection. Good traders don’t slam the gas; they prepare.”

What to watch next: Look for a close above Thursday’s high on increasing volume — potential confirmation that the ducks are not just floating, but ready to take off.

Key Takeaways:

• The Bullish Harami is forming at a potential support zone in Aflac’s downtrend.

• It suggests a slowdown in bearish momentum and possible short-term reversal.

• The pattern is an alert more than a signal.

• Context matters: prior support, sector sentiment, and volume all enhance this setup’s weight.

The content on this site is for educational purposes only and isn’t meant to be financial advice. We’re here to teach you about Candlestick analysis, but any decisions you make are your own. Always do your own research or talk to a professional before making financial moves.