Kinsale Capital Poised to Resume Bullish Trend
Kinsale Capital (KNSL) experienced a correction in October following an earnings-driven sell-off. However, the charts now indicate that the correction may be over and the property and casualty insurer’s shares could be ready to resume their bullish trend. The stock has stabilized above a key support level near $335, which is defined by previous resistance dating back to 2022 and the upward-sloping weekly cloud model on the chart.
The fact that the price is above the upward-sloping cloud suggests that the long-term bullish trend remains intact. Additionally, there are signs that the corrective phase has matured, indicating a potential resumption of the long-term uptrend. KNSL’s weekly stochastics show an oversold upturn, which is a relatively rare signal that has occurred only four times since the stock went public in 2016. Each of these occurrences has provided a favorable entry point for several months.
Breakout and Short-Term Momentum
Last week, KNSL broke out above initial resistance from the 50-day moving average, indicating a positive shift in short-term momentum. This breakout supports further upside potential in the near term and suggests that minor resistance around $376 can be overcome. Beyond $376, there are only minor resistance levels before reaching final resistance near $458.
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Hot Take: Kinsale Capital’s Correction May Be Over
Kinsale Capital (KNSL) appears to have completed its corrective phase after a sell-off in October. The stock has stabilized above key support levels, indicating a potential resumption of its long-term bullish trend. The oversold upturn in KNSL’s weekly stochastics is a rare signal that has historically provided favorable entry points for several months. With a breakout above the 50-day moving average and positive short-term momentum, KNSL could see further upside in the near term. Minor resistance levels around $376 are likely to be overcome, with the possibility of reaching final resistance near $458. Keep an eye on Kinsale Capital as it may continue its upward trajectory.
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