PRU ends the day indecisive
Prudential Financial Inc. (PRU) Technical Analysis Report for Feb 21, 2020 | by Techniquant Editorial Team
PRU ended the week -1.99% lower at 92.60 after losing $1.18 (-1.26%) today, slightly underperforming the S&P 500 (-1.05%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PRU as at Feb 21, 2020):
Friday's trading range has been $1.90 (2.04%), that's slightly above the last trading month's daily average range of $1.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PRU.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After trading down to 91.43 earlier during the day, the market bounced off the key technical support level at 91.62 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on February 14th, PRU actually lost -1.38% on the following trading day. The share closed back below the 200-day moving average at 93.10.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 90.17, downside momentum might speed up should the stock break out to new lows for the year. Trading close to December's low at 89.84 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Prudential Financial. Out of 49 times, PRU closed higher 57.14% 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 69.39% with an average market move of 0.48%.