PFG rallies 4.16% closing $1.66 higher
Principal Financial Group Inc (PFG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PFG ended Wednesday at 41.61 surging $1.66 (4.16%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 41.53, Principal Financial confirmed its breakout through the prior session high after trading up to $0.42 above it intraday.
Daily Candlestick Chart (PFG as at Sep 16, 2020):
Wednesday's trading range has been $1.96 (4.88%), that's far above the last trading month's daily average range of $1.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PFG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on September 1st, PFG gained 0.98% on the following trading day.
The stock managed to close back above the 100-day moving average at 41.33. Prices are trading close to the key technical resistance level at 42.49 (R1). After having been unable to move lower than 39.93 in the previous session, the share found buyers again around the same price level today at 39.99.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 42.68.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Trading close to July's low at 39.73 we might see further downside momentum if potential sell stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Principal Financial. Out of 58 times, PFG closed higher 65.52% 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 three trading days, showing a win rate of 55.17% with an average market move of 0.38%.