travelers car insurance

i want tolook at travelers( $trv travelers companies inc ). the dow was actuallyup pretty nice today, but travelers ( $trv travelers companies inc )was definitely not participating. that's because this company isgoing to have let's just say,significant payouts of because of the tornadothat's blown through the midwest. that's truly a tragedy but i'mnot really talking about that now i'm talking about this stock. so

do you avoid this stock because it's got aclear break of support ? you can see how this stock has broken belowthe 50-day moving average so it's time to sell the stock; you'vegot to get out of here, right here, right now before itfalls even further. i would say, no, not so fastand here's why. first of all, the weekly chart, yes, it shows a really nice uptrend. we knowwhy the stock was falling today; we would expect the stock to fall on this type ofnews.

this is what happens withinsurance companies when you insure against a natural disaster. youjust have, hello, property and casualty insurance and youhave property damage and casualties; guess what? your stock is going to take a hit. if you look at the weekly chart andgo back to say, prior disasters, you can see that it would have actuallybeen a pretty good move to buy into this weakness. now,

i'm not saying thattravelers ( $trv travelers companies inc )is done going down, but i am saying that this is actually a pretty good opportunity tostart building, what i would deem, a low risk position; here's why ithink it's low risk. because if you just look at today'sintraday low 83.16 you can see the stock closed just a littlebit above that. now if i were just to kind of projectout in time, i've seen this type of pattern before, you see a big move down like this andthen the next day

perhaps the stock even opens up alittle lower, maybe it trades down for one more day, but maybe it also opens up lower, and then starts to reverse and tricklehigher. i think we don't have to choose, first of all by the time you can act onthis video the opening bell is going to ring andyou'll be able to do it. here's my take though. if we look at this intraday,you'll see where there's some pretty solid support. this was the big overdone sell-off downhere to 83.16.

after that the stock really trickledhigher the rest of the day. so i'm looking at this level here as some pretty solid support for travelers ( $trv travelers companies inc ).so if you're buyingthis stock now you would want to set a stop just below the intraday low,because we could have another down day. so you'd set a stop just below today'sintraday low. if it turns out thattravelers ( $trv travelers companies inc )opens up lower tomorrow, don't know whether it is or not,

then where you would want to actually buyis above this intraday low, expect a better resistance up at thislevel. then iftravelers ( $trv travelers companies inc )winds up clearing that level, you've bought here, your adding there, and now you're off tothe races. so try that strategy tomorrow and see ifit works. at the very least you're going to lose only a little bit of moneybecause this is low risk trade.

Posted by exco

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