An attempted buyout from Ageas after profit warnings. Can Direct Line Groupe start making profits again?
Insurance has risen substantially over the past year. This may help to stabilize insurance companies that have been battered due to persistent storms damaging homes in the UK and the price of car repairs soaring since Covid.
DLG has a clear resistance @ 327.9 and the support is continuing to raise which is forming an ascending wedge. The chart needs to consolidate between the range of 324.6 - 328.0 to create a big breakout of resistance. If the chart does play out then my game plan would be the following:
Trigger: 329.2
TP: 339.7
SL: 327.1
RR: 5:1
Direct Line Group continues to trade within a medium term downtrend. In the last couple of sessions we have seen a rejection at the medium term trend resistance line and also the top of a range that has developed over the past few months.
This rejection is likely to trigger a move to the lower end of the channel at 332p.
332p is a huge support level that has...
