TRV closes higher for the 2nd day in a row
The Travelers Companies Inc. (TRV) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TRV ended Wednesday at 128.04 gaining $0.78 (0.61%), slightly outperforming the Dow Indu. (0.46%). Today's close at 128.04 marks the highest recorded closing price since December 3, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TRV as at Feb 13, 2019):
Wednesday's trading range has been $1.58 (1.24%), that's slightly below the last trading month's daily average range of $1.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TRV.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on November 21, 2018, TRV lost -0.91% on the following trading day.
Prices are trading close to the key technical support level at 127.30 (S1).
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Trading close to December's high at 130.92 we could see further upside momentum if potential buy stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for The Travelers. Out of 46 times, TRV closed higher 54.35% 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 63.04% with an average market move of 0.44%.