TRV unable to break through key resistance level

The Travelers Companies Inc. (TRV) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team


TRV unable to break through key resistance level
TRV closes higher for the 2nd day in a row
TRV pushes through Monday's high
TRV still stuck within tight trading range


Moving higher for the 2nd day in a row, TRV finished the month 6.61% higher at 114.05 after gaining $1.15 (1.02%) today, slightly outperforming the Dow Indu. (0.85%). Closing above Monday's high at 113.42, the market confirmed its breakout through the prior session high after trading up to $1.07 above it intraday.

Daily Candlestick Chart (TRV as at Jun 30, 2020):

Daily technical analysis candlestick chart for The Travelers Companies Inc. (TRV) as at Jun 30, 2020

Tuesday's trading range has been $2.39 (2.13%), that's below the last trading month's daily average range of $3.81. 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 TRV. Prices continued to consolidate within a tight trading range between 110.55 and 114.83 where it has been caught now for the whole last trading week.

Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 26th, TRV actually gained 3.35% on the following trading day.

Unable to break through the key technical resistance level at 114.28 (R1), the stock closed below it after spiking up to 114.49 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.

The Travelers shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Buying might accelerate should prices move above the close-by swing high at 114.83 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 110.55 where further sell stops could get activated.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for The Travelers. Out of 86 times, TRV closed higher 58.14% 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 58.14% with an average market move of 0.16%.

Market Conditions for TRV as at Jun 30, 2020

Loading Market Conditions for TRV (The Travelers Companies Inc.)...
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