The charts show a possible breakout in this insurance stock, says Katie Stockton
Looking for areas of the market well positioned for early 2026, many insurers set up favorably with momentum turning higher and relative trends showing improvement. This is an area of the market where we would view a pullback as an opportunity to build exposure. An insurer with a bullish catalyst is Chubb (CB) . Last week, CB confirmed a breakout above resistance at its 2024 peak (~$302). The breakout resolves a one-year trading range to the upside in a long-term bullish development, marking a resumption of the secular uptrend that has been in place since the 2020 low. The setup on the monthly chart resembles late 2023, when CB broke out from a trading range as the MACD histogram ticked higher, reflecting improved long-term momentum. An impressive measured-move objective of approximately $380 can be derived for next year. Intermediate-term momentum is strongly positive per the weekly MACD, and weekly stochastics are pointing higher within overbought territory. In this situation, we do not view overbought conditions as a bearish indicator because they are typically overruled by upside momentum following a major breakout. However, we would not be surprised to see healthy consolidation persist in the near term to reset the uptrend. Oftentimes, price will retest the breakout point (~$302) as support before resolving higher. We would welcome a pullback for a more favorable entry. The ratio of CB to the SPX has turned the corner, establishing a higher low and a higher high this month. The improvement in the ratio reverses the phase of underperformance that began in April, setting up CB for outperformance relative to the broader market in Q1 2026. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. 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