Potential Retest of support in $TRV

Travelers is one of the larger players in the Property and Casualty Insurance Industry.

After two major hurricanes have hit the United States the company suspended its share buyback program.

They have already spent $328 million to buy back 2.6 million shares for the quarter which may have inflated the stock price.

The stock price had a huge jump after the projection of the storm moved past a direct hit to Miami from $116 to over $126

Shares climbed with the positive market on Sept 8th and 11th to move up over $10 but has since traded back down to $118.75 on Sept 14th.

With the halt in the share buy back and only small guidance of potential loss on Harvey of $375 to $750 Million the stock may see further selling pressure.

We would expect a test of recent lows of pre hurricane Irma levels of $115 area.  If these lows fail to hold then the next level would be near the $105 level.

Once better guidance is released on the full effects of Irma, we can see the stock start to find a bid as long as the guidance isn’t a major surprise that would significantly hurt the full year projections.

Disclosure: Own September Puts

Here is a simple stock chart to show the stock action and potential support areas: