Sunday, June 08, 2008

Insurance Sector Analysis for 06.08.2008

Monthly chart shows continued weakness and selling. Price is below all key moving averages, and below the down trendline in place. No buy signal evident as of yet on this timeframe.

Weekly chart shows resistance at the $50.50 level, which has a confluence of reasons: 1) .382 fib area 2) 34ema 3) small LIS where "old support becomes new resistance and 4) possible wave 4 consolidation before next leg lower.

Daily chart shows renewed selling with Friday's trading session as the bears gapped down the open and sold off their positions right into the close. Look for a re-test of the current $42.50 area low. There could be consolidation before lower.

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