Shares of Prudential Financial (PRU) were cut to a market perform ("hold") rating by a sell-side firm Wednesday. Let's check out the charts of this financial services name.
In this daily bar chart of PRU, below, we can see that prices rallied from late September to the middle of November. Trading volume did not increase until prices were well off their lows and into the month of November.
Now look at the movement of the daily On-Balance-Volume (OBV) line in October and November.
The Moving Average Convergence Divergence (MACD) oscillator has rolled over and signaled a take profit sell signal.
In this weekly Japanese candlestick chart of PRU, below, we can see a mixed picture. Prices have rallied above the 40-week moving average line but are stalled in front of some significant chart resistance in the $110-$120 area. The weekly OBV line is relatively weak and the MACD oscillator is still below the zero line.
In this daily Point and Figure chart of PRU, below, we can see a potential upside price target in the $115 area.
In this weekly Point and Figure chart of PRU, below, we can see a price target in the $154 area. Not bad.
Bottom line strategy: The charts of PRU are mixed but a close below $105 could tip the scales to the downside. Protect long positions - i.e., raise stops.
