RSI Touches 40.83 For The Hartford Financial Services Group, Inc. (NYSE:HIG)

The Hartford Financial Services Group, Inc. (NYSE:HIG)’s stock has been under the lens of “smart money” aka institutions, as of late.  Institutions are currently holders of 94.70% of the shares.  On the other hand, company insiders are holding 0.20%.  The Hartford Financial Services Group, Inc.’s stock price currently sits at $57.08.

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Institutional portfolio managers can perform a more intense in-depth analyses than the average investor because of the vast resources at their disposal.  This includes relationships with wall street sell-side analysts from which they obtain stock research reports.  They have access to teams of researchers and data that the average investor doesn’t have.  It doesn’t guarantee that they’ll make money on the stock, however, but it greatly enhances the chance that they will turn a profit, or at least have the key factors in front of them to make an informed decision. 

Along the same lines is the price target and recommendations from brokerage firm analysts.  On a consensus basis the Street sees the stock heading to 64.35 in the near term.  Based on a 1 to 5 integer scale, analysts have a 2.3 recommendation on the name.  

Investors and Traders using technical analysis to review stocks may be focusing on the ATR or Average True Range. Currently, The Hartford Financial Services Group, Inc. (NYSE:HIG) has a 14-day ATR of 0.88. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.

Checking in on some other technical levels, the 14-day RSI is currently at 41.25, the 7-day stands at 39.92, and the 3-day is sitting at 51.62. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, The Hartford Financial Services Group, Inc. (NYSE:HIG)’s stock was 28.41%.  Over the last week of the month, it was -0.71%, -0.70% over the last quarter, and  8.27% for the past six months.

Another technical indicator that may be a powerful resource for determining trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for The Hartford Financial Services Group, Inc. (NYSE:HIG) is noted at 20.88. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

The Williams Percent Range or Williams %R is another technical indicator worth taking a look at. The Hartford Financial Services Group, Inc. (NYSE:HIG) currently has a 14 day Williams %R of -79.18. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.

The Hartford Financial Services Group, Inc. (NYSE:HIG) currently has a 14-day Commodity Channel Index (CCI) of -82.85. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

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