FNHC (Federated National Holding Co.) offers an objective short entry here on this backtest of dual resistance levels (trendline + price resistance).
FNHC daily Sept 18th
The suggested stops for this trade are 14.70 if targeting the first target, T1 at 12.39, and a second stop at 15.30, if targeting the second price target, T2 at 10.17. The suggested beta-adjusted position size for this trade is 0.9.
Federated is one of several property & casualty insurance companies that appear to be in the final stages of the first counter-trend rally since the Hurricane Irma induced sell-off with at least one more leg down likely to come soon.
Additional trade ideas in both the Property & Casualty sector as well as the reinsurance sector may follow soon as several of the insurance companies recently highlighted appear to offer objective shorting opps following the recent “Hurricane Irma not a bad as feared” relief rally appears to have run its course.