Leading insurance holding company, Progressive Corp (PGR), is coming under some sharp selling pressure today. The stock is trading lower by 3.89% to $96.46 a share. The fall comes after a downgrade by Morgan Stanley to Underweight from In line due to looming margin pressure. The popular insurance stock is now trading below its important 50-day moving average. This puts the stock in a weak technical position on the charts and could signal further downside in the shares.
Traders should now watch for very solid chart support around the $88.00 level. This level is where the stock broke out of a bearish formation in March 2021. Very often, when stocks retest major reversals from the past they will be defended by the institutional crowd. This level would be a very good long side opportunity for Progressive Corp (PGR) stock.
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