CB climbs to highest close since April 17th
Chubb Limited (CB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CB ended the week 17.6% higher at 117.00 after gaining $3.92 (3.47%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 117.00 marks the highest recorded closing price since April 17th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 113.48, the stock confirmed its breakout through the prior session high after trading up to $3.89 above it intraday.
Daily Candlestick Chart (CB as at May 22, 2020):
Friday's trading range has been $5.17 (4.57%), that's above the last trading month's daily average range of $4.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CB.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 103.83.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test April's nearby high at 124.81.
Among the seven 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 452 times, CB closed higher 51.55% 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 55.53% with an average market move of 0.28%.