Are you looking for potential investment opportunities in the financial sector? At Extreme Investor Network, we have identified a stock that may be on the brink of a significant downward trend.
In recent weeks, the financial sector, along with other value-oriented sectors, has been underperforming major equity benchmarks. This shift in performance has led us to closely monitor Progressive Corp. (PGR) as a potential short candidate.
Progressive Corp. had been in an uptrend from July 2023 through Q1 2024, but in April and May of this year, the stock started showing signs of bearish rotation. The stock broke down through its 50-day moving average and is now consolidating in a range between $202 and $215.
This week, Progressive broke below a trendline formed by major lows over the past 12 months, signaling a potential breakdown below support at $202. If this support level fails to hold, we could see the stock enter a distribution phase with lower lows and lower highs in the coming weeks.
To confirm this bearish momentum, we are closely monitoring the RSI indicator for a break below 40. Additionally, we are using Fibonacci retracements to identify potential areas of support. One possible downside target is around $177, which aligns with the 38.2% retracement level and the 200-day moving average.
As investors, timing is crucial, and the analysis of Progressive Corp. suggests that now may be the right time to consider a new downtrend phase for this former high-flying insurance stock. Stay updated on our blog at Extreme Investor Network for more insights and investment opportunities.
Remember, before making any financial decisions, it is important to seek advice from your own financial or investment advisor. Click here to read our full disclaimer.