First up this week is Swiss insurer ACE (ACE). Even though ACE isn't technically located in the eurozone, the firm has massive exposure to EU firms. More significant, because the Swiss franc is currently pegged to the euro, we can effectively lump Swiss stocks alongside the other Schengen countries.
Now onto the technical.
ACE spent all of 2012 forming a long-term ascending triangle pattern, a setup that's marked by horizontal resistance to the upside and uptrending support below. Essentially, as shares bounce in between those two technically important levels, they're getting squeezed closer and closer to a breakout above resistance. When that breakout happens, traders have a buy signal on their hands.That's exactly what happened late last week with ACE. Shares broke higher on Thursday and Friday, pushing through resistance at $74. Since then, this stock has made a throwback down to support at $74, a move that potentially gives traders a second low-risk entry opportunity in shares; it's going to be critical for ACE to hold that support level at $74 if this setup is to stay intact. With ACE reporting earnings tomorrow morning, I'd strongly recommend waiting for those numbers to come out before buying. ACE shows up on a list of 5 Buy-Rated Insurance Stocks for Long-Term Investors.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV