Follow Inflation: KIEMotor Vehicle insurance prices are up 2.6% month-over-month and 22% year-over-year according to the latest Consumer Price Index report published by the Bureau of Labor Statistics. This should benefit insurance sector equities, so let's take a look at the KIE Insurance ETF.
First Chart (Trend Line; 1 Year):
Taking a 1 year view we can see that (KIE) has been following this trend line perfectly since October 2023 with no breaches below.
Second Chart (50DMA; 1 Year)
Same timeframe but remove the trend line and add a 50D moving average and what do you see? Perhaps we have a bounce here at the 50D moving average, with some volume above average to support (see bottom of chart for volume bars).
Third Chart (5 Year)
Zoom out to the 5 year chart and we notice that (KIE) broke out of its sideways price action in November 2023. If using previous price action as a measurement for future price action, the range would suggest we could see a total of 25% gain from breakout area. If this measurement tool proves correct in this analysis it would suggest we have another 12% of upside left in the (KIE).
Price Targets & Gameplan:
Long @ $50
Stop Loss: $48.50
Profit Targets: $52, $55, $56
Thank you for reading and follow for more.
Sources:
U.S. Bureau of Labor Statistics. (2024, April 10). Consumer Price Index Summary . Retrieved April 11, 2024, from www.bls.gov
KIE trade ideas
SOMETHING IS BROKEN IN THE INSURANCE SECTOR. WATCH $IAK $KIESomething is broken in the Insurance sector.
Is there insurance for insurance?
Trading is like Sherlock Holmes, sniffing for clues. And this is what we found!
$IAK
- volume surged since 21st May 2022
- POC level seen at the peak of the chart seems like smart money has been distributing at the top
- bearish momentum divergence / momentum broke below neckline
$KIE
- like $IAK, seems like the smart money haven been distributing at the peak ( stage 3 )
- price rejected upward trendline
- price retest neckline at the moment
- bearish momentum divergence
"the difference between good and great is attention to detail"
Cheers and happy trading!