PRU.L breaks back above 100-day moving average
Prudential plc (PRU.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PRU.L ended Wednesday at 1537.50 gaining £17.50 (1.15%) on high volume, slightly outperforming the FTSE 100 (0.81%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PRU.L as at Feb 13, 2019):
Wednesday's trading range has been £24.50 (1.59%), that's slightly below the last trading month's daily average range of £29.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PRU.L.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on December 31, 2018, PRU.L lost -2.07% on the following trading day.
Prudential managed to close back above the 100-day moving average at 1528.30 for the first time since February 6th. Prices are trading close to the key technical resistance level at 1552.00 (R1).
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 1552.00 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Prudential. Out of 158 times, PRU.L closed higher 55.06% 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 62.03% with an average market move of 1.24%.