PFG closes higher for the 3rd day in a row
Principal Financial Group Inc (PFG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PFG finished Thursday at 33.85 gaining $1.26 (3.87%) on low volume, notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PFG as at Mar 26, 2020):
Thursday's trading range has been $2.34 (7.09%), that's below the last trading month's daily average range of $3.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PFG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 34.86 (R1). After having been unable to move above 34.86 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 34.66. The last time this happened on February 14th, PFG lost -1.95% on the following trading day.
While the stock 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 speed up should prices move above the close-by swing high at 34.86 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Principal Financial. Out of 519 times, PFG closed higher 54.34% 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 58.77% with an average market move of 0.42%.