2 Bullish Insurance Stocks to Bank On

Look into AET for an intermediate-term trade or IHC for the short-term

   

The Trending123 Pattern Scan has identified these two bullish technical patterns in these three insurance stocks — one that should play out in the next six weeks to nine months, and the other for the near-term. Let these patterns serve as your diving-off point in researching these trades.

8 6 13 ihc 300x255 2 Bullish Insurance Stocks to Bank On
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Bullish Continuation Diamond

Healthcare insurance stock AET has developed a bullish continuation diamond pattern over the past 25 days, which indicates an intermediate-term trade if the pattern is confirmed.

The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. The pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamond’s boundary lines, it marks the resumption of the prior uptrend.

Target Price: $68.20 – $69.10

Stop: $59.75

8 6 13 aet 300x256 2 Bullish Insurance Stocks to Bank On
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Bull Flag

Independence Holding Company (IHC) is in the life and health insurance business, and has shown a bullish flag pattern over the past 10 days. This is a short-term pattern expected to play out within the next seven days.

The price seems to be resuming a sharp rally after taking a brief pause. A bullish flag pattern occurs during a dynamic market rally, representing a brief pause as the market “catches its breath” before running off again in the same direction. The pattern consists of two parallel trend lines, often sloping downward against the prevailing uptrend, and is confirmed when the price breaks through the upper boundary to resume the rise.

Target Price: $18.00 – $18.80

Stop: $12.04

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the OpenParabolic Options and Trending123.  Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership.


Article printed from InvestorPlace Media, http://investorplace.com/247trader/2-bullish-insurance-stocks-to-bank-on/.

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