Investors and traders probably know about Progressive Corp. (PGR) because of their frequent TV commercials. While we might be amused by those sixty-second spots, I think the charts and indicators of PGR are way more entertaining -- and certainly can be more rewarding. Let's check them out.
In the daily bar chart of PGR, below, we can see an upward sloping bullish channel from September. Prices are back above the rising 50-day moving average line while the 200-day line remains positive. The daily On-Balance-Volume (OBV) line shows a rise for the past 12 months. A rising or bullish OBV line tells me that buyers of PGR have been more aggressive than sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has spent much of the past year above the zero line where it stands Wednesday.
In the weekly bar chart of PGR, below, we can see a consolidation zone back in 2015-2016 in the $30-$35 area. This sideways price action preceded the big rally from around $30 to over $65 now. Prices are above the rising 40-week moving average line.
The weekly OBV line has climbed higher since late 2016 and confirms the price gains. The MACD just turned up to a fresh outright go long signal.
In this Point and Figure chart of PGR, below, we can see an upside breakout at $64.78 and a possible upside price target of $84.53.
Bottom-line strategy: After the rally so far this month for PGR we are likely to see prices consolidate those gains and trade sideways in the $66-$68 area before turning higher again. Traders should try to buy PGR around $66, risking below $62 and looking for a rally to the $85 area.