PRU closes lower for the 2nd day in a row
Prudential Financial Inc. (PRU) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PRU ended the week 0.04% higher at 68.15 after losing $0.44 (-0.64%) today on high volume, but still slightly outperforming the S&P 500 (-1.12%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PRU as at Sep 18, 2020):
Friday's trading range has been $1.08 (1.59%), that's far below the last trading month's daily average range of $1.91. 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.
Prices are trading close to the key technical support level at 67.17 (S1). The market closed back below the 20-day moving average at 68.55. When this moving average was crossed below the last time on Tuesday, PRU actually gained 1.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 67.42 where further sell stops could get triggered. As prices are trading close to September's high at 71.19, upside momentum might accelerate should the share mark new highs for the month. As prices are trading close to September's low at 66.76, downside momentum could speed up should Prudential Financial mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Prudential Financial. Out of 176 times, PRU closed higher 60.23% 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 four trading days, showing a win rate of 57.95% with an average market move of 0.27%.