Many of the leading insurance stocks sold off on Monday in the first wake of Hurricane Harvey. The damage from the storm is unprecedented and the final costs to the insurance sector won't be known for some time. Stocks like Travelers (NYSE:TRV), Allstate (NYSE:ALL), Progressive (NYSE:PGR) and others traded sharply lower Monday.
Chart Support
Travelers is a leading component of the Dow Jones Industrial Average and is weighing on the price-weighted Dow. By mid-day Monday, TRV was trading lower by $3.73 to $122.74 a share. The stock is nearing its 200-day moving average, which will be short term support. Unfortunately, by the time the dust settles on the damage in Texas, this stock could actually fall further. Traders should now focus on $118 as the next major level of support, which was defended in April and will likely be major support again when retested.
