This under-the-radar insurance stock just triggered a rare buy signal

Published Mon, Jan 8 202412:32 PM EST

Kinsale Capital (KNSL) was in corrective mode since an earnings-driven sell-off in October. The charts are signaling that could be over now and that shares of the property and casualty insurer could be ready to resume their bullish trend. The stock has since stabilized above key support near $335, which is defined by previous resistance going back to 2022 and the upward-sloping weekly cloud model (shaded area on the chart). With price above the upward-sloping cloud, it suggests a bullish long-term trend is intact. There are signs that the corrective phase has matured for a resumption of the long-term uptrend. KNSL has an oversold upturn in its weekly stochastics, which is a signal that is somewhat rare, noting it has occurred only four times since the stock's IPO in 2016. We found that each occurrence offered a favorable entry point for the duration of several months, at a minimum. KNSL was able to breakout above initial resistance from the 50-day (10-week) moving average ("MA") late last week. The breakout is associated with a positive shift in short-term momentum, which supports upside follow-through in the near term and suggests minor resistance near $376 is surmountable. Above $376, there are only minor resistance levels for KNSL below final resistance near $458. Interested in more ideas from Katie? Access research from Fairlead Strategies for free here . DISCLOSURES: (None) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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