| Arch Capital Group is a holding company. Through its subsidiaries and, through operations in Bermuda, the U.S., Europe and Canada, Co. writes lines of property and casualty insurance and reinsurance, as well as mortgage insurance and reinsurance. Co.'s segments are: insurance, which writes business on both an admitted and non-admitted basis; reinsurance, which writes business on both a proportional and non-proportional basis and writes both treaty and facultative business; and mortgage, which operations include U.S. and international mortgage insurance and reinsurance operations as well as government sponsored enterprise credit risk-sharing transactions. |
When researching a stock like Arch Capital Group, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from ACGL Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for ACGL stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting ACGL RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue.