As we can see on the chart below, QBE staged an impressive rally during March. However, since then it has drifted back to its breakout zone of $12. The move back has been corrective and has used up more time than the March rally. I have also noticed that the stock has gapped 3 times during this pullback. That is, we have a potential breakaway gap (1), a continuation gap (2), and finally an exhaustion gap (3) which caused an island reversal (circled). We can also see divergence on the RSI. I would feel comfortable buying QBE down at the these levels. For some clients I have sold the $12.50 put as an alternative strategy to buying shares.