There are signs that CHUBB LTD (NYSE:CB) may be ready to 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.

We assign a technical rating of 9 out of 10 to CB. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CB is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that CB is one of the better performing stocks in the market, outperforming 85% of all stocks.
• CB is one of the better performing stocks in the Insurance industry, it outperforms 70% of 143 stocks in the same industry.
• In the last month CB has a been trading in the 266.74 - 292.16 range, which is quite wide. It is currently trading near the high of this range.
• CB is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

Check the latest full technical report of CB for a complete technical analysis.

Why is CB a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, CB has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, CB also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 288.73, a Stop Loss order could be placed below this zone.

How to trade CB?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice. 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.