To preserve gains and manage risk, we are tightening our stop-loss level for Steel Dynamics (STLD) from $72.70 to $74.60 and Kellogg (K) from $70.00 to $73.20.
Our latest idea is Reinsurance Group of America (RGA), which we discovered in Austin Hankwitz’s latest post, in which he includes a list of “Events Driven Winners” from LevelFields; check out his informative weekly snapshot report below:
RGA gapped up late last week after a positive earnings reaction, which resulted in a breakout from a short-term sideways range. The breakout is associated with positive intermediate-term momentum, noting the weekly MACD has a bullish whipsaw similar to late March.
From a long-term perspective, RGA has seen a long-term basing phase form since bottoming in December 2021, which has resulted in positive relative strength this year. RGA is now back above the monthly cloud model (not shown) with long-term momentum to the upside.
A measured move projection of ~$139 from the breakout can be used as an intermediate-term upside objective, while two consecutive closes below gap-based support near $118 can be used as a stop-loss level.
Reinsurance Group of America (RGA, $124.25):
Target: $139
Stop-Loss: $118