PRU breaks back above 20-day moving average
Prudential Financial Inc. (PRU) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PRU ended Wednesday at 69.32 gaining $0.96 (1.4%), strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PRU as at Sep 16, 2020):
Wednesday's trading range has been $2.30 (3.35%), that's above the last trading month's daily average range of $1.86. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PRU. Prices continued to consolidate within a tight trading range between 68.33 and 70.64 where it has been caught now for the last three trading days.
The share managed to close back above the 20-day moving average at 68.58. When this moving average was crossed above the last time on Monday, PRU actually lost -2.01% on the following trading day. Prudential Financial found buyers again today around 68.34 for the third trading day in a row after having found demand at 68.33 in the prior session and at 68.41 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 68.33 where further sell stops might get triggered. As prices are trading close to September's high at 71.19, upside momentum could accelerate should the market mark new highs for the month. As prices are trading close to September's low at 66.76, downside momentum might speed up should the stock mark new lows for the month.
Among the four 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 Prudential Financial. Out of 659 times, PRU closed higher 53.87% 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 56.90% with an average market move of 0.37%.