In today’s Super Seasonals Trade of the Week we will look at The Travelers Company (TRV).
The Travelers Co., Inc. is a holding company, which engages in the provision of commercial and personal property and casualty insurance products and services.
The stock has had a ho-hum year, nothing too dramatic one way or another from a performance standpoint. From a daily technical perspective and an analyst perspective, they are both Neutral:
However, there is a solid seasonal time period that is setting up for the stock…
If we look at the last 20 plus years, there’s been 10%-30%+ moves into the year end.
Looking at a chart below there’s longer term resistance into the $180’s region.
There’s an interesting gap/support level in the $164-ish area. And it looks like it may potentially be setting up for a 3 bar reversal setup, which is a shorter-term bullish move. If it shows a momentum break above $170-ish, then it might be a good area to buy shares of the stock.
The weekly chart shows us bouncing off a channel support and pivot area…as well as trading below mean reversion value (yellow line). There appeared to be overhead resistance in the upper mid $180’s area.
On the daily chart below, we are at a support channel/pivot area, slightly below mean reversion value (yellow line). With shorter term overhead resistance in the mid-$170’S area.
In regards to potential directional debit option ideas, I do not like anything. To keep it simple, plainly put, the risk/reward on them is not attractive to me.
As you likely know, there are literally dozens of solid ways to approach trading The Travelers Company (TRV) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on The Travelers Company (TRV) and other solid seasonal opportunities click here SuperSeasonals. For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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