First American Financial FAF Investment Analysis

October 09, 2021, 12:30 pm ET, BY Jesse F.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

With an objective approach to First American Financial (NYSE: FAF), Stock Traders Daily attempts to go with the flow of the market by utilizing a combination of market analysis and stock analysis.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for FAF change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

Subscribers also receive market analysis, stock correlation tools, macroeconomic observations, timing tools, and protection from market crashes using Evitar Corte.  

Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if FAF is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for FAF too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for FAF

• Buy FAF slightly over 69.20 target 72.49 stop loss @ 69 Details

The technical summary data tells us to buy FAF near 69.20 with an upside target of 72.49. This data also tells us to set a stop loss @ 69 to protect against excessive loss in case the stock begins to move against the trade. 69.20 is the first level of support below 70.68 , and by rule, any test of support is a buy signal. In this case, support 69.20 is being tested, a buy signal would exist.

• Short FAF under 72.49, target 69.20, stop loss @ 72.7 Details

The technical summary data is suggesting a short of FAF as it gets near 72.49 with a downside target of 69.20. We should have a stop loss in place at 72.7though. 72.49 is the first level of resistance above 70.68, and by rule, any test of resistance is a short signal. In this case, if resistance 72.49 is being tested, a short signal would exist.

Swing Trading Plans for FAF

• Buy FAF slightly over 72.49, target n/a, Stop Loss @ 72.28 Details

If 72.49 begins to break higher, the technical summary data tells us to buy FAF just slightly over 72.49, with an upside target of n/a. The data also tells us to set a stop loss @ 72.28 in case the stock turns against the trade. 72.49 is the first level of resistance above 70.68, and by rule, any break above resistance is a buy signal. In this case, 72.49, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short FAF near 72.49, target 69.57, Stop Loss @ 72.7. Details

The technical summary data is suggesting a short of FAF if it tests 72.49 with a downside target of 69.57. We should have a stop loss in place at 72.7 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 72.49, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for FAF

• Buy FAF slightly over 72.49, target n/a, Stop Loss @ 72.32 Details

If 72.49 begins to break higher, the technical summary data tells us to buy FAF just slightly over 72.49, with an upside target of n/a. The data also tells us to set a stop loss @ 72.32 in case the stock turns against the trade. 72.49 is the first level of resistance above 70.68, and by rule, any break above resistance is a buy signal. In this case, 72.49, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short FAF near 72.49, target 70.58, Stop Loss @ 72.66. Details

The technical summary data is suggesting a short of FAF if it tests 72.49 with a downside target of 70.58. We should have a stop loss in place at 72.66 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 72.49, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

FAF Ratings for October 09:

Term →	Near	Mid	Long
Rating	Strong	Neutral	Strong
P1	0	0	65.45
P2	69.16	67.86	69.20
P3	70.58	69.57	72.49

Support and Resistance Plot Chart for FAF

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.