First up this week is Travelers (TRV), the $25 billion insurance company. Travelers has spent much of 2012 forming a bullish ascending triangle setup -- a trade that broke out in early August. Now, though, a throwback in shares is giving investors a second low-risk chance to buy this stock.
Put simply, an ascending triangle is a pattern that's formed by a horizontal resistance level and uptrending support. The buy signal comes when shares push up above resistance. While that obviously already happened for TRV when shares moved above $64, the return back to test that former resistance line (the throwback I mentioned a minute ago) is a good thing for traders.
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