CB finds buyers again around 117.21
Chubb Limited (CB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CB ended Wednesday at 118.59 gaining $0.93 (0.79%), strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CB as at Sep 16, 2020):
Wednesday's trading range has been $2.99 (2.53%), that's slightly below the last trading month's daily average range of $3.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CB.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 9th, CB actually lost -2.45% on the following trading day.
Prices are trading close to the key technical support level at 117.17 (S1). Prices are trading close to the key technical resistance level at 121.10 (R1). After having been unable to move lower than 117.51 in the prior session, the stock found buyers again around the same price level today at 117.21.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 123.25.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Chubb. Out of 564 times, CB closed higher 50.00% 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 54.08% with an average market move of 0.28%.