If you own European Insurance, hold on to it!
AXA has been breaking out repeatedly, in sequence.
Very healthy sign, for a stock which has been showing momentum strength on all time frames.
Non holders should look at getting long towards the bottom of the current range, at about 23.50.
This should be feasible as the stock is looking slightly overbought at the current level.
Alternatively, selling short-dated puts around the 23.50 level would make sense.
Buying upon a close above 24.75-25.00 also makes sense to participate in the next breakout as it happens.
AXA has been breaking out repeatedly, in sequence.
Very healthy sign, for a stock which has been showing momentum strength on all time frames.
Non holders should look at getting long towards the bottom of the current range, at about 23.50.
This should be feasible as the stock is looking slightly overbought at the current level.
Alternatively, selling short-dated puts around the 23.50 level would make sense.
Buying upon a close above 24.75-25.00 also makes sense to participate in the next breakout as it happens.
Comment:
AXA is now consolidating from previously over-extended condition. The stock is now looking weaker in the shorter time frames. I recommend a Euro 23.50/share stop-loss.
Trade closed: stop reached:
In the context of a toppish market (see earlier post on the Eurostoxx50) and ahead of the European earnings season, AXA looks like it is technically turning negative. The long term picture is still bullish, but the weekly chart is showing a potential turn in momentum, while the shorter term, daily chart suggests it is past time to take profits. Current holders should take profits and await better directional indication from the general market and greater clarity post earnings (Feb 23).