Markel Corporation (MKL)
Markel Corp is like a mini Berkshire Hathaway. Its primary business is property and casualty insurance. However, it uses the income from its insurance business to buy non-insurance businesses in diverse areas. The company’s primary driver of long term growth comes from its investment activities. Its CEO has a reputation of beating the S&P500 by 2 percentage points on average over the past 5 years.
The Long-Term monthly chart for Markel shows a clear and consistent uptrend that peaked out at the $1200 level in 2018. Since then, the stock seems to have gone into a range as the price failed to go higher than the 2018 highs. The stock went through a major downtrend in March 2020 when the price fell by 44% and went below the bottom of the long term trend. Starting May 2020, the price has risen by 43% and recently crossed a historic support zone at $1074 which could have acted as resistance.
The price now looks poised to test the $1200 peak levels of 2018 and early 2020. A stop loss can be placed at somewhere near the $1000 level.
Positions take today at $1073.88. With a stop loss 30% below at $743. Take profit point at $1300 giving a profit 21%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.