The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. It operates through six segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, Mutual Funds, and Talcott Resolution.
Take a look at the 1-year chart of Hartford (NYSE: HIG) below with added notations:
HIG has been trending mostly higher for the past 8 months. However, the stock has recently stalled again, as HIG has now hit the same resistance at $57 (red) on three separate occasions. The stock is currently sitting just under that level now, and a solid close above the $57 should lead to another leg higher for HIG.
The Tale of the Tape: HIG has a 52-week resistance at $57. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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!
Christian Tharp, CMT