Will CHUBB LTD breakout?

Our stock screener has flagged CHUBB LTD (NYSE:CB) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:CB for potential movement.

Insights from Technical Analysis

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, CB scores 8 out of 10 in our technical rating. Although CB is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• 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 - 224.29 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, CB did better than 79% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• CB is an average performer in the Insurance industry, it outperforms 66% of 143 stocks in the same industry.

Our latest full technical report of CB contains the most current technical analsysis.

How does the Setup look for NYSE:CB

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CB currently has a 8 as setup rating:

Besides having an excellent technical rating, CB also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 215.76, a Stop Loss order could be placed below this zone.

How to trade NYSE:CB?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Of course, there are many ways to trade or not trade NYSE:CB and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill 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.