Approaching Resistance-Travelers

Published on Wednesday, 03 February 2010 11:37 Written by TradersHuddle Staff

New York, jan 3^rd (TradersHuddle.com) - Shares of Travelers Companies, Inc. (NYSE:TRV) are trading very close to calculated resistance at $51.13 with the current price action closing at just $51.09 placing the stock near levels that make it difficult to buy.

The Travelers Companies, Inc. (NYSE:TRV) provides commercial property casualty insurance and asset management services. The Company underwrites homeowners and auto insurance through independent agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which requires a credit-based underwriting process, and property and casualty products primarily in the U.S., the United Kingdom, Ireland, and Canada. The insurer was founded in 1853 and is headquartered in St. Paul, MN

Travelers' current stock range is defined by current calculated support defined at $47.35 and by the resistance level at $51.13, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Travelers, as the stock is well above support, however, as the stock pulls back towards $47.35 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $51.13 then traders will get an opportunity to enter Travelers stock by establishing a position as the stock moves to a higher range.