HIG would have to rank amongst my favorite setups right now as the stock looks to offer an objective short entry on a break below this daily uptrend line/bearish rising wedge pattern. Both the weekly & daily charts are in alignment for a potential multi-month swing short trade to my preferred target of 23.20. More active traders might prefer to take partial or full profits at the first target (T1 at 28.15). Stops to be determined upon entry.
As anyone who has followed RSOTC for a while knows, I put a heavy weighting on divergences, both positive & negative when formulating an opinion on a stock. It has been my experience that more often than not, once we have clear, unambiguous divergences in place on the daily time frame and assuming those divergences are confirming a bullish or bearish technical price pattern, that those divergences play out for a rally or correction much more often than not. This daily chart highlighting all divergences on HIG over the last few years helps to illustrate that point. Of course, nothing is 100% in trading… not even close. Even the best patterns fail to play out at times so never fall in love with a trade, always use proper position sizing and do not become complacent with your stops. Daily & weekly charts below.