With a rather defensive approach, we filter the 160 stocks from the DAX®, MDAX® and SDAX® every week according to the criteria Relative Strength according to Levy (RSL) and Average True Range (ATR). The factors “momentum” and “low volatility” are therefore combined with the aim of filtering out individual values that are as stable as possible and at the same time have little fluctuation. Munich Re shares have been in this category for weeks. But the attractiveness of the stock comes from another direction: On the one hand, the stock is one of the few DAX® stocks that bucked the trend in August. On the other hand, the share is listed well above the “pre-Corona high” of EUR 284.20 – a phenomenon that only a few insurance stocks have managed to do so far. In terms of charts, there is a new high and the spurt above the upper limit (currently at EUR 347.77) of the bull trend channel that has existed since 2003. As part of the current trend acceleration, even the historic record high of EUR 378.29 from November 2000 could be targeted again. On the other hand, there is support in the form of the above-mentioned channel limit (EUR 347.77), the 38-week line (currently at EUR 327.86) and the high from February 2020 (EUR 284.20).
Munich Re (Weekly)
Source: Refinitiv, tradesignal² / 5-year chart attached
5-year Munich Re chart
Source: Refinitiv, tradesignal²
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