Monday, August 28, 2006

Trade Ideas: NAVG

Large caps and tech indices started their upside breaks from bullish flags. Volume remained pitiful, but climbed from that of Friday's - a minor accumulation day. Still plenty of work for the markets to do, but at least it is heading in the right direction.

The Blogger Sentiment Poll has turned the most bullish since its inception on July 7th. In every poll I have remained one of the bullish participants.

As for today's stock scan, there were a couple of Trade Ideas picks which were topping the daily frequency list: EWW (35), NAVG (33) and AXS (30). Navigator's group (NAVG) perhaps has the most interesting chart.

The stock confirmed a double bottom in June/July (lows of $40, neckline at $44.62) before entering a sideways consolidation handle. Volume slipped as the sideways $44-46 range congested. A break of $46 looks ready to occur in the next day or two, setting up a challenge of $50.19. Not shown in the chart is the supporting presence of the 200-day MA ($44.22). Although thinly traded (float 13M, 80% institutional ownership), buying volume has handily exceeded selling volume. The point-n-figure chart is neutral for a price pattern, and has exceeded its target of $49. So instead, look for a projected base target of $60.

The Navigators Group, Inc. operates as an international insurance holding company focusing on specialty products for the property/casualty insurance market in the United States and the United Kingdom. It specializes in underwriting marine insurance and related products, contractors' general liability insurance, and professional liability insurance.







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