Stocks To Watch: Conifer Holding Inc [NASDAQ: CNFR] closed last week in the green. That’s in spite of significant weakness in the entire market. On Friday, the company gained by 21.06% to close the week at $3.87. That’s a huge gain considering that major indices in the U.S and globally ended the week in the red. This was occasioned by an escalation of the trade war, a factor that has added uncertainty to an already weakened global economy.
Friday’s huge surge in value saw CNFR come close to a major resistance level at around $4. It’s a level where it has consolidated in the past, and one that could be significant this week. If CNFR gains enough momentum to push above this level, then there is a chance that it could make a move short term. That’s because, there are so many factors that are weighing down the market at the moment, and bullish momentum would be an indicator of strength. On the flip-side, if CNFR fails to push past the $4 mark, then traders might need to watch the major indices and, their potential impact on the market. At the moment, the Chinese Yuan is trading at a decade’s low against the dollar, and it is weighing heavily on Asian markets. If the same trend extends to the U.S market, stocks could experience some correction.
Besides, these external factors, traders will be watching out for Conifer’s Q2 earnings report on the 7th of August. If its results beat analyst expectations, it could be a major trigger to this company’s push above the $4 resistance. The company offers specialty insurance for commercial and personal lines, and operates nationally. Strong results would be indicative of strength in its business, and could help drive up bullish sentiment. However, this stock does trade very light volume so it is not that liquid.