NEW YORK ( TheStreet) -- Shares of Travelers is attracting very heavy selling pressure today. The Dow 30 Industrial member is off over 2% and will finish the day with its second heaviest downside volume day of the year.
TRV has been basing for the last three weeks following the ugly April 21 selloff. Since then the stock has been trading in a very narrow range while holding support near the 200-day moving average. This key long-term moving average supplied major support last summer and has done so again at multi-week lows in April and early May.
If this level gives way, TRV could suffer a deep pullback. A close below $100 would clearly violate the April low and would dramatically weaken this major support zone. Once through, TRV would have a clear path down to the summer 2014 highs near $96. An oversold reading (MACD) as this area comes into play could set the stock up as a very low-risk buy between $95 and $96.