A technical analysis of TRAVELERS COS INC/THE.

We've identified TRAVELERS COS INC/THE (NYSE:TRV) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:TRV for further developments.

Insights from Technical Analysis

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

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

• Both the short term and long term trends are positive. This is a very positive sign.
• TRV is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so TRV is lagging the market slightly.
• In the last month TRV has a been trading in the 174.60 - 186.55 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the performance of all stocks over the past year, TRV turns out to be only a medium performer in the overall market: it outperformed 46% of all stocks.
• TRV is part of the Insurance industry. There are 144 other stocks in this industry, TRV did better than 48% of them.
• Volume is considerably higher in the last couple of days.

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

Why is NYSE:TRV 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, NYSE:TRV has a 9 as its setup rating, indicating its current consolidation status.

TRV has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 183.34, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TRV in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:TRV?

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.