CINF: A Good Pullback Trading Opportunity
-INTRODUCTION-
Cincinnati Financial Corporation has been moving in an ascending channel since 2020 summer after its recovery from the pandemic economic shock. Last month, the price has reached a new high at the $142.50 level. After reaching a new high, the price retraced and retested the suport level of $120. From the support level, the price has formed a potential double top pattern, making a neckline area at around the $126 level.
-TRADING PLAN-
The price has reached a new high; therefore, we will plan to buy the pullback. Currently, we are watching for a breakout from the neckline of the double bottom pattern. After a clear breakout, we will place our buy limit orders at the neckline level to capture the retest. Our buy target is set at the previous high of $142.50 level.
Check out our previous trend-following stock trading ideas below :)
Cincinnati Financial Corporation has been moving in an ascending channel since 2020 summer after its recovery from the pandemic economic shock. Last month, the price has reached a new high at the $142.50 level. After reaching a new high, the price retraced and retested the suport level of $120. From the support level, the price has formed a potential double top pattern, making a neckline area at around the $126 level.
-TRADING PLAN-
The price has reached a new high; therefore, we will plan to buy the pullback. Currently, we are watching for a breakout from the neckline of the double bottom pattern. After a clear breakout, we will place our buy limit orders at the neckline level to capture the retest. Our buy target is set at the previous high of $142.50 level.
Check out our previous trend-following stock trading ideas below :)
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