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Insurance Stocks Dump After Hurricane Harvey

|About: Allstate Corporation (ALL), PGR, TRV

As you all know, many of the leading insurance stocks are selling off today after Hurricane Harvey hit Texas. The damage from the storm is unprecedented and the final costs to the insurance companies will not be known for a while. Insurance stocks such as Travelers Companies Inc(NYSE:TRV), Allstate Corp(NYSE:ALL), Progressive Corp(NYSE:PGR) and others are trading sharply lower during today's trading session.

Travelers Companies Inc(NYSE:TRV) is a leading component of the Dow Jones Industrial Average(DJIA). This stock is weighing on the DJIA today since this index is price cap weighted. Today, TRV stock is trading lower by $3.73 to $122.74 a share. The stock is now approaching 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 decline further. Traders should now focus on the $118.00 area as the next major chart support level. This level was defended in April 2017 and will likely be major support again when retested.

Nicholas Santiago