Cincinnati Financial (CINF) Tries to Hold Once More

Cincinnati Financial Corp. (CINF) provides property casualty and life insurance services. It operates through the following segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.

Take a look at the 1-year chart of CINF below with added notations…

Chart of CINF provided by TradingView

CINF has formed a major level of support at the $113 (blue) mark over most of the past year. The stock has made its way back down to that $113 level again, thus a bounce may follow. However, if the support were to break, lower prices will likely follow for CINF.

The Tale of the Tape: CINF has key support at $113. A trader could enter a long position at or around $113 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

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 


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