Aegon N.V. (NYSE: AEG)

Aegon N.V. provides life insurance, pensions, and asset management services. It offers life and protection products, such as traditional and universal life insurance products, as well as employer, endowment, term, and whole life insurance products; and supplemental health, accidental death and dismemberment insurance, critical illness, cancer treatment, credit/disability, income protection, travel, and long-term care insurance products.

Take a look at the 1-year chart of Aegon (NYSE: AEG) below with added notations:

1-year chart of Aegon (NYSE: AEG)

AEG had been in a sideways consolidation since the beginning of 2018. During that time, the stock created an important resistance level at $7 (green), which was also AEG’s 52-week high resistance barrier. Now that the stock has broken above that level, traders could look to enter a position on a decline back down to that $7 mark.

The Tale of the Tape: AEG broke its 52-week resistance at $7. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $7 could negate the forecast for a move higher.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT