PFG closes higher for the 2nd day in a row
Principal Financial Group Inc (PFG) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PFG finished Thursday at 55.98 edging higher $0.07 (0.13%), outperforming the S&P 500 (-0.38%). 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 Feb 20, 2020):
Thursday's trading range has been $0.79 (1.42%), that's slightly below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PFG.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on December 6, 2019, PFG lost -0.76% on the following trading day.
Prices are trading close to the key technical support level at 55.88 (S1). Prices are trading close to the key technical resistance level at 56.56 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 56.65 where further buy stops might get triggered. With prices trading close to this year's high at 57.16, upside momentum could speed up should Principal Financial be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Principal Financial. Out of 328 times, PFG closed higher 52.74% 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 57.93% with an average market move of 0.59%.