THU 8/6: PRI – BUYING (1/3) @ $325.49

3:47 PM – Starting a 1/3 position in this insurance leader as we head into today’s close. Shares found support at the 10 DMA, are trading higher, and appear set to close at a new all-time high while volume runs 52% above average. That combination of strong price action, support at the 10 DMA, and expanding volume gives me a technical BUY SIGNAL.

James’ Trader’s Tip: New Highs Should Be Supported by Volume

  • A move to new highs confirms that the stock is demonstrating superior relative strength.

  • Above-average volume adds conviction by showing increased demand behind the advance.

  • When a stock rebounds from the 10 DMA and pushes into new highs on expanding volume, the technical evidence is distinctly bullish.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.