Travelers

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.

>>5 Rocket Stocks Worth Buying This Week

That may seem surprising -- after all, shares have been sliding -- but a throwback gives TRV the chance to confirm the strength of its newfound support level at $64.

The ideal entry point comes on a bounce off of $64. While the bounce means that you're sacrificing a few points of profits, it also greatly reduces the risks that TRV will slip through $64.

If you decide to be a buyer here, I'd recommend a protective stop just below the 50-day moving average.

If you liked this article you might like

Microsoft Has Been Reborn Under CEO Satya Nadella

How to Make Your Life Successful Just Like Billionaire Warren Buffett

Great Expectations? Apple 8 Line Not as Long as in Past Years

Apple Chart - iPhone 8 Selloff Accelerates, Watch These Support Levels