Tokio Marine (8766.JP): Rebound Losing Steam
Ming Lam May 1, 2020 3:37 AM
The share-price's significant fall on Friday (May 1) makes the recent rebound look tired...
Tokio Marine Holdings (8766.JP), Japan's largest non-life insurer, tumbled 6.8% Friday (May 1), its biggest decline in four years.
The Company, along with other insurance giants such as Sompo Holdings (8630.JP) and MS&AD Insurance Group (8725.JP), are facing increasing risks from the impact of the coronavirus pandemic
Apart from coronavirus-related insurance claims in Japan, these Japanese insurance firms are expected to deal with growing business interruption and employee compensation claims overseas, particularly in the U.S. Lockdowns in major economies implemented to contain the coronavirus pandemic are pushing businesses to the brink of collapse.
Uncertainty of such risks could cap any upside potential of those stocks.
On a Daily Chart, Tokio Marine is 12% off its March closing low of 4223 yen, but is still down 22.5% year-to-date.
Source: GAIN Capital, TradingView
The share-price's significant fall on Friday (May 1) makes the recent rebound look tired.
Only a clear break above the Key Resistance at 5220 yen, around the descending 50-day moving average and the Upper Bollinger Band, would confirm a Bullish Reversal.
If the Stock shows further weakness, it is expected to seek Support at 4500 yen and in extension, 4170 yen (the intraday low of March) on the downside.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.