Send me real-time posts from this site at my email
Fan Yang

Chubb Limited (CB) - Bulls in Control

In April we noted that Chubb Limited $CB retreated from resistance around $141. but could remain bullish if it holds above the $132. We noted that the trend had shifted from a bearish to a sideways one, and could be shifting into a bullish one if price breaks the $141.25 resistance.

Chubb Limited (CB) Retreats from Key Resistance

It turned out that price respected a previous resistance at $135.60 and then broke above the $141.25 at the end of April. Now in May, it continues to show us bullish signals after the breakout.

CB Daily Chart

(click to enlarge)

Bullish Signals:
- The earliest bullish signal was when price broke above the moving averages as well as the falling resistance by February 2019. Even though the price high of $135.60 was still holding, price managed to show respect to the broken resistance factors as support, which was a major sign that bulls were taking over.
- Then, the break above $135.60 was key in establishing higher highs.
- Then, the RSI pushed above 70, which signaled initiation of bullish momentum.
- In April, as we mentioned above, price turned the $135.60 resistance into support.
- Finally, the market provided the latest bullish signal last week.
- CB retreated from around $145, but found support around $141.30, right around the previous resistance. 
- For CB in 2019, resistance turning into support has been a strong signal that bulls are still in charge.
- I think CB could be heading towards the highs from 2018, which is just above $155. We can therefore anticipate upside towards $150. 

Chubb Limited is an insurance company and won't be affected directly by the China-US trade war. Financials in general will likely stay buoyed during this period unless other factors for risk aversion spring up. 

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue