Insurance Stocks Are Breaking Out 🌤️ The Morning Print

Good morning! 

The iShares Insurance ETF (IAK) closed at new all-time highs last week on very strong momentum.

Here's the setup.

After breaking out in Q4 2023 and rallying roughly 45%, the insurance ETF has spent nearly two years digesting those gains.

Ahead of that breakout, price carved out an ascending triangle, defined by horizontal resistance and a series of higher lows.

The current pattern looks strikingly similar with volatility even more compressed, suggesting the potential for a move larger than the resolution seen before.

Last week, that built up energy was finally released, with IAK having its second-best week over the past three years.

The combination of strong momentum, volatility compression, and a breakout from a major resistance level is exactly the type of setup that has the potential to produce outsized gains.

Now let's see if insurance stocks can follow through and build on this fresh leg higher.