PFG closes lower for the 2nd day in a row
Principal Financial Group Inc (PFG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PFG finished the month 2.14% higher at 42.43 after edging lower $0.02 (-0.05%) today on high volume, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PFG as at Jul 31, 2020):
Friday's trading range has been $0.96 (2.26%), that's below the last trading month's daily average range of $1.33. 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.
Four candlestick patterns are matching today's price action, the Dragonfly Doji, the Southern Doji and the Takuri Line which are known as bullish patterns and one neutral pattern, the Doji. The last time a Doji showed up on July 20th, PFG gained 2.14% on the following trading day.
Prices are trading close to the key technical support level at 41.41 (S1). After having been unable to move lower than 41.63 in the previous session, the stock found buyers again around the same price level today at 41.53.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for Principal Financial. Out of 2 times, PFG closed higher 100.00% 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 50.00% with an average market move of 3.49%.