Fidelity National Financial Inc. (FNF) - June 12, 2025
A sector that is potentially sending a warning sign of high
risk is SIA Insurance (insu). This is visually represented in the attached SIA
Sector Scope, where three technical observations are presented.
First, we see that the SIA Insurance sector now has a
negative bullish percent reading, identified by the lowercase label (insu).
Second, the reading itself (63–67%) is high, meaning that
the reciprocal reading (37–33%) of insurance stocks in the SIA universe are
producing point and figure sell signals. Since the bullish percent reading is
negative, this number is increasing.
Third, and potentially most important, is the fact that the
SIA Insurance sector has recently rotated down into the bottom of the SIA
Sector Report and now sits in the unfavored region. This could be a developing
story and may leave savvy advisors wondering: is this related to the
underperformance of long-term bonds—an asset class that many insurance
companies hold in mass?
In reviewing the SIA US Insurance Sector Report and scanning
for relative decliners, we find Fidelity National Financial Inc. (FNF), which
has recently lost its own relative strength and is now one of the leading
relative losers within the report. This is illustrated in the attached SIA
matrix position chart, with a black arrow pointing to the sharp decline.
Turning next to the point and figure chart of Fidelity National Financial (FNF), we find the initial stages of what appears to be a price discovery triangle which, if it completes to the downside, would result in a bearish triangle. Within this pattern, we observe p&f resistance levels initially at $58.98, followed by $63.84. Supportive levels may begin at $53.42, then $50.34, and finally $44.70.
One additional reading we can glean from the SIA platform is FNF’s low SMAX score—1 out of 10—when compared on a near-term relative basis against a basket of alternative asset classes.
What we are highlighting here is the elevated risk level of the insurance sector in general, and FNF in particular, as one of the lowest relative strength equities within one of the lowest relative strength sectors.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.