Progressive’s Stock Could Be Set for an increase of 20% of

Shares of The Progressive Corporation (PGR), the giant of insurance, are in place for an escape massive. The stock has been volatile as the rest of the stock market in recent weeks, and he has not set a new high.

However, with fewer accidents on the road as people drive less, the insurance companies are sure to be a great beneficiary of the economic, of these prohibitions over the last few months. Progressive’s stock has not reached a new record, it has created an interesting chart pattern that one can trade on an ascending triangle pattern.

These models are great because of two things. First of all, we know that the key levels to monitor. And secondly, we know how much of a move to expect once an escape occurs. The most difficult part is to get the direction of the line.

While most triangle patterns are continuation patterns, which means that the share price will move in the direction it was heading before the boss took place, not all follow. This is why it is important to know the key levels so that you can enjoy again the trend is taking place.

Here is the graph to break the model Progressive:


The two objectives of price on the chart will depend ultimately on the direction of the escape. And to understand the expected move, we simply take the height of the pattern, using the high and the low, which is $17 per share. This gives us a clear price targets.

Based on the fact that these triangles are usually continuation patterns, we expect that the $101 price target, which would equate to a 20% increase in the weeks to come. Even if the stock has a tendency to side for a year, the shares are above their 200-day moving average, and the trend prior to the pricing of consolidation has been below the bottom of the rising triangle.

So, the smart money will be on a breakout to the upside. However, if the support zone is broken, we are looking at an even more rapid 20% decline.

The Bottom Line

Progressive inventory of the key areas on the price chart to look at us, indicating that 20% of movement is about to take place. If you want to get at the beginning, the best is to wait for a break to the upside, potentially sending shares to $101 in the weeks to come.


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