PRU closes lower for the 2nd day in a row
Prudential Financial Inc. (PRU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PRU finished the month 4.06% higher at 63.37 after edging lower $0.29 (-0.46%) today, notably underperforming the S&P 500 (0.77%). 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 (PRU as at Jul 31, 2020):
Friday's trading range has been $1.40 (2.2%), that's below the last trading month's daily average range of $1.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PRU.
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. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on June 12th, PRU gained 2.18% on the following trading day.
Prices are trading close to the key technical resistance level at 64.50 (R1). After having been unable to move above 63.91 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 63.71.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 65.77 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 61.75 where further sell stops might get activated.
Among the five 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 53 times, PRU closed higher 56.60% of the time on the next trading day after the market condition occurred.