PFG runs into sellers again around 49.97
Principal Financial Group Inc (PFG) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
PFG finished the week 3.66% higher at 49.30 after losing $0.23 (-0.46%) today, but still slightly outperforming the S&P 500 (-0.92%). Trading $0.65 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PFG as at Nov 09, 2018):
Friday's trading range has been $1.30 (2.64%), that's slightly below the last trading month's daily average range of $1.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PFG. Prices continued to consolidate within a tight trading range between 48.44 and 49.99 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 48.67 earlier during the day, the stock bounced off the key technical support level at 48.78 (S1). The failure to close below the support might increase that levels significance as support going forward. After spiking up to 49.97 during the day, the share found resistance at the 20-day moving average at 49.97. After having been unable to move above 49.99 in the previous session, Principal Financial ran into sellers again around the same price level today, missing to move higher than 49.97. The last time this happened on Tuesday, PFG actually gained 2.34% on the following trading day.
Though PFG is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 49.99 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Principal Financial. Out of 15 times, PFG closed higher 73.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.33% with an average market move of 2.52%.