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.

If you liked this article you might like

Hartford Financial Remains Source of Takeover Chatter

Jim Cramer Says Kraft Heinz Can Go Much Higher, Likes Chubb

3 Financial Stocks Pushing The Sector Higher

3 Stocks Dragging The Financial Sector Downward

3 Stocks Moving the Financial Sector Upward