Principal Financial Group (PFG) Breaks Out Amid Friday’s Rally
Principal Financial Group, Inc. is a financial company, which offers financial products and services to businesses, individuals and institutional clients. It specializes in retirement solutions, insurance, and investment products through its diverse family of financial services companies and national network of financial professionals. It operates its business through following segments: Retirement and Income Solutions, Principal Global Investors, Principal International, U.S. Insurance Solutions and Corporate.
Take a look at the 6-month chart of Principal (PFG) below with the added notations:
Chart of PFG provided by TradingView
After hitting $80 as resistance (blue) on multiple occasions over the past several months, PFG has now broken above that level, while also hitting a new 52-week high in the process. Overall higher prices should be coming, and the $80 level could now provide potential support on pullbacks.
The Tale of the Tape: PFG broke its 52-week resistance of $80. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A failure to hold $80 could negate the expectations for a higher move.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT