CB pushes through key technical resistance level
Chubb Limited (CB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CB ended Thursday at 109.22 gaining $7.42 (7.29%), significantly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 108.35, the stock confirmed its breakout through the prior session high after trading up to $2.00 above it intraday.
Daily Candlestick Chart (CB as at Mar 26, 2020):
Thursday's trading range has been $9.85 (9.58%), that's slightly above the last trading month's daily average range of $9.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CB.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 103.98 (now S1), which is likely to act as support going forward. The last time this happened on March 4th, CB actually lost -4.64% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Chubb. Out of 451 times, CB closed higher 51.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.77% with an average market move of 0.21%.