The Hanover Insurance Group (THG) topped out at $75 in 1998, sold off to single digits in 2002 and printed higher lows in the low $30s between 2008 and 2012. It then rallied within 1½ points of the multi-decade high in December of last year and eased into a sideways pattern that's gathered momentum in the last week, lifting the price to a 17-year high and into a test of the breakout level. On Balance Volume (OBV) is matching price action.
This setup may take time to unfold because the shallow rising channel since December doesn't favor a quick breakout. However, rounded lows in the last two months sets a strong higher low and handle pattern into place, reducing risk and increasing odds for a major breakout that could reach triple digits.
For now, we could get a pullback to $71.75 to $72, with that zone offering an interesting trade entry for patient positions.