Is Cincinnati Financial Corp. Headed for a Breakdown? – July 20, 2021

Cincinnati Financial Corp. (CINF) provides property-casualty and life insurance services. It operates through the following segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.

Take a look at the 1-year chart of CINF below with added notations…

After a steady 6-month rally, CINF has settled on top of a key level of support at $113 (green). The stock has fallen back down to that support level again, and another rally could start from there. However, a break of $113 could mean much lower prices for the stock.

If the stock were to break below the support, a short position could be entered under $113 with the expectation of a breakdown.

Author: Christian Tharp, CMT