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Wednesday, October 1, 2014

Travelers Companies: Shares to rally for the rest of 2014

Traveler’s Companies shares (NYSE:TRV) are expected to rally again and become strong for the rest of the year 2014. This has been a strong market for most of this year, plus deep corrections have been followed by nice rallies.

For this analysis, the EMA 21 and the Williams’ % Range period 20 are used. The price is currently around the EMA 21 and when it goes above it, that would be the period the buyer would want to take action. The Williams’ % Range period 20 is currently in the oversold territory, and when it leaves the territory, the bullish signal of the upwards sloping EMA 21 would be confirmed.

The transitory pullback here is not a ‘sell’ signal. Rather, it is a ‘buy’ opportunity. Irrational speculators may quickly sell their shares because of a transitory pullback. It is advisable to follow the line of the least resistance, but this is best done when losers have been forced to accept their negativity. This would shield you from being forced to cover your positions as well. When irrational traders are forced out of the markets – nursing their wounds – some professionals may also be forced out with them.

Traveler’s Companies market price may reach the distribution territory at 100.00 before the end of this year.

This forecast is ended by the quote below:

“Cynics aren't ready for the unexpected. They view setbacks as evidence that the world is corrupt. They secretly believe that it's impossible to make money in the markets and they are looking for evidence to throw in the towel.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals



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