PFG still stuck within tight trading range
Principal Financial Group Inc (PFG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PFG finished the week 9.1% higher at 36.93 after edging lower $0.07 (-0.19%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 May 22, 2020):
Friday's trading range has been $0.96 (2.58%), that's far below the last trading month's daily average range of $1.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PFG. Prices continued to consolidate within a tight trading range between 35.27 and 37.19 where it has been caught now for the whole last trading week.
After having been unable to move above 37.10 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 37.19. The last time this happened on Wednesday, PFG actually gained 2.44% on the following trading day.
Principal Financial shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 35.53 where further sell stops could get triggered. As prices are trading close to May's high at 38.31, upside momentum might speed up should the stock mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Principal Financial. Out of 680 times, PFG closed higher 55.88% 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 57.94% with an average market move of 0.67%.