Not All Investors Cheering ACE Limited Acquisition Of Chubb

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

ACE Limited ACE shares are trading higher by $4 at $105.58 in Wednesday's session. The Street is applauding the company's acquisition of Chubb that was announced earlier today for $28.3B in cash and stocks. However, some investors are utilizing the unexpected rise in the issue to exit the stock. Within one hour of the deal being revealed ACE raliied from Tuesday's close ($101.68) all the way to $114.90 in premarket trading. That coincides with its December high ($115.40), but well shy of its all time made earlier in that month at $117.89. By the opening of the regular session it had drifted down to the $110 level. After a brief pop to $110.84 another wave of seller flooded the issue. So far, it has declined to $104.27 before mounting a rebound into the $107 handle and heading lower once agian. Keep in mind, ACE traded down to a ten month low on June 26, when it reached $99.45 before rebounding to close at $103.48. If the decline continues through the intraday low there may be support at the pari lows from Monday ($101.48) and Tuesday ($101.60) session.