| August 25th, 2021 Buying Pressure Send BRO Shares Higher Dear Reader, Yesterday, we looked at a Daily Price Chart of BioNTech SE, noting the stock has recently retraced below the upper Keltner Channel in the ‘Buy Zone’. For today’s Trade of the Day we will be looking at an On Balance Volume chart for Brown & Brown Inc. stock symbol: BRO. Before breaking down BRO’s OBV chart let’s first review which products and services are offered by the company. Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, Cayman Islands, Ireland, and the United Kingdom. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. The company offers builders risk, group medical and pharmaceutical, property, commercial auto, homeowners, reinsurance, crop and hail, inland marine, retirement benefit, cyber, disability, risk mitigating warranty products, directors and officers, management liability, errors and omissions, medical stop loss, term life, excess liability, personal auto, umbrella, general liability, prescription drug, workers compensation, and group dental insurance products. Confirming a Price Uptrend with OBV The BRO daily price chart below shows that BRO is in a price uptrend as the current price is above the price BRO traded at five months ago (circled). The On Balance Volume chart is below the daily chart. On Balance Volume measures volume flow with a single Easy-to-Read Line. Volume flow precedes price movement and helps sustain the price uptrend. When a stock closes up, volume is added to the line. When a stock closes down, volume is subtracted from the line. A cumulative total of these additions and subtractions form the OBV line. On Balance Volume Indicator ● When Close is Up, Volume is Added ● When Close is Down, Volume is Subtracted ● A Cumulative Total of Additions and Subtractions form the OBV Line Volume flow precedes price and is the key to measuring the validity and sustainability of a price trend. We can see from the OBV chart below that the On Balance Volume line for BRO is sloping up. An up-sloping line indicates that the volume is heavier on up days and buying pressure is exceeding selling pressure. Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend. So, On Balance Volume is a simple indicator to use that confirms the price uptrend and its sustainability. The numerical value of the On Balance Volume line is not important. We simply want to see an up-sloping line to confirm a price up trend. 
Confirmed ‘Buy’ Signal for BRO Since BRO's OBV line is sloping up, the most likely future price movement for BRO is up, making BRO a good candidate for a stock purchase or a call option purchase. The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat BRO price to a 12.5% increase. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following BRO option example, we used the 1% Rule to select the BRO option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation. | 
0 Response to "Buying Pressure Send BRO Shares Higher"
Post a Comment