Genworth Financial Trades in an Upside Price Channel

Genworth Financial (GNW), a diversified financial company that will join the S&P 500 on December 1, 2005, is on the upside. Since it was spun off from General Electric (GE) in May 2004, GNW has risen from $19.27 to $34.45, up 78.78%. GENW pays a modest dividend of $0.30 (0.87% yield at $34.45).

The price upside is bounded by parallel lower and upper boundaries which define an upside price channel. In a price channel the price moves down when it hits the upper boundary and turns up when it hits the lower boundary.