FREE Guide: 6 Fibonacci Types that Create the Most Precise Price Levels, Targets, and Reversal Zones

April 30 Chart of the Day - Prudential

Precision oriented price action technical analysis by far provides the best edges and most setups for traders across the markets so that's what we use for the basis of our reviews.

Prudential Financial, Inc. (PRU) provides insurance, retirement planning, investment management, and other products and services to both retail and institutional customers throughout the United States and in over 40 other countries. 

They report earnings after market close today so we wanted to review their chart from a price action technical analysis perspective.

Monthly Chart 

Prudential monthly price action technical analysis review

On the monthly chart we can see over two decades of historical price information, more data is always preferred when charting.  Seemingly, price has formed a multi year channel as defined by the parallel red trend lines with a recent lower high of which time will tell whether or not it truly is a lower high or just a bump in the road to a higher high.

Trading around $110.50 earlier today we can see that price has been moving in a level to level fashion while it decides its next major move up or down.

Weekly Chart with Price Targets for May 17

Prudential weekly price action technical analysis review

On the weekly chart we can see with much more clarity the level to level price moves.

Price may be taking a breather, perhaps waiting for earnings as a catalyst for its next move.

In the meantime, we've also layered in Fibonacci levels in both directions to use as potential levels of interest and/or future price targets.  

For earnings we've included the implied target moves the market is anticipating by Friday May 17 by using the at the money straddle option cost for that expiration.

Of interest to note, for each of the last 8 quarters price rose 50% of the time after earnings while falling the other 50% of the time.

Upside target - $117.66
Downside target - $103.95

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections. 

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