Based on good technical signals, CHUBB LTD is potentially setting up for a breakout.

A possible breakout setup was detected on CHUBB LTD (NYSE:CB) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:CB.

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall CB gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, CB is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• CB is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so CB is performing more or less in line with the market.
• In the last month CB has a been trading in the 205.64 - 221.65 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, CB did better than 80% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• CB is an average performer in the Insurance industry, it outperforms 63% of 142 stocks in the same industry.
• Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of CB

How does the Setup look for NYSE:CB

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:CB is 9:

Besides having an excellent technical rating, CB also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 214.13, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.