Tight Consolidation Could Mean A Big Move For CB

by | Jan 11, 2024

Breakout traders love tight consolidation.

What does that mean?

It’s when a stock goes sideways in a very tight channel.

Anytime a stock does that, it’s a harbinger of things to come.

Many times a big breakout will happen after this type of action, and many times that breakout will be to the upside.

And we have such a consolidation on Chubb (CB).

Here’s the chart:

CB is above the 30-week moving average, and it’s near a new high.

A bullish market and a breakout above $230.40 could lead to a big move.

We’ll keep an eye on it.

Happy trading,

— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

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