W. R. Berkley Corp (NYSE:WRB) is moving well following last night’s earnings beat.
The stock has been consolidating in a narrow range since mid-July. During this phase WRB has been straddling its 200-day moving average. The 200D capped the initial post March high near $65.00. This heavy resistance zone held the July, August and September highs. Despite today’s surge, WRB remains range bound, but a upside breakout may be ahead. A close above the $66.00 area could spark quite a run. The stock has solid footing underneath and is well below overbought readings.
On the downside, a close back below $61.00 would violate this week’s low indicating more sideways action is ahead.
Note: We have no position.
You can read Gary S. Morrow's original post here.