Globe Life is an insurance company with offerings in life insurance, health insurance, and annuities. The company has an experienced management and is known for its conservative underwriting. The company has grown its earnings per share every year for over a decade. Berkshire Hathaway holds a 5.9% stake in Globe Life, recognizing the high quality of its business. Life insurance and health insurance premiums are expected to grow 5%-7% in the future, and the long-term prospects of Globe Life are bright.

The long-term monthly chart for Globe Life shows an uptrend since 2009. The price has trended within a clear channel marked by the top and bottom trend lines. The $91 level has played an important role since 2018 as it initially acted as a resistance zone and then later turned into a support zone. The price broke the bottom of the long-term trend during March 2020 to September 2020 period. However, it rose over 100% from its lowest point and broke out above the $91 zone. Most recently, there has been a retest at the confluence of the $91 support level as well as the bottom trendline. A reversal is playing out, and the likely target is $107. A stop-loss can be placed below the bottom trend line at $88.

Position entered into our long-term tracking portfolio today. The entry point is at $95.01, and stop-loss is $76.81, which is 19% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $108.87, giving a profit of 15%.