CB closes higher for the 2nd day in a row
Chubb Limited (CB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CB ended the month 3.84% higher at 126.62 after gaining $0.92 (0.73%) today, underperforming the S&P 500 (1.54%). Closing above Monday's high at 126.54, Chubb confirmed its breakout through the previous session high after trading up to $0.77 above it intraday.
Daily Candlestick Chart (CB as at Jun 30, 2020):
Tuesday's trading range has been $2.53 (2.02%), that's far below the last trading month's daily average range of $4.69. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for CB. Prices continued to consolidate within a tight trading range between 123.16 and 129.00 where it has been caught now for the whole last trading week.
Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, CB actually lost -3.58% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 124.64 (S1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 129.00 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 123.16 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Chubb. Out of 73 times, CB closed higher 50.68% 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 61.64% with an average market move of 0.79%.