CB breaks below Friday's low
Chubb Limited (CB) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CB ended Monday at 119.56 losing $2.38 (-1.95%) on low volume, strongly underperforming the S&P 500 (0.38%). Closing below Friday's low at 121.06, the share confirmed its breakout through the prior session low after trading up to $2.51 below it intraday.
Daily Candlestick Chart (CB as at Jun 01, 2020):
Monday's trading range has been $2.57 (2.12%), that's below the last trading month's daily average range of $3.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CB.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on May 26th, CB actually gained 3.93% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Chubb. Out of 353 times, CB closed higher 56.09% 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 59.21% with an average market move of 0.53%.