Principal Financial Waiting for a Break Out?

Published on Monday, 30 August 2010 05:04 Written by Christian Paolinetti

New York, August 30th (TradersHuddle.com) - Shares of Principal Financial Group, Inc. (NYSE:PFG) closed the trading session at $23.21 near its 50 day moving average currently set at $24.23. Principal Financial's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Principal Financial Group, Inc. (NYSE:PFG) offers businesses, individuals and institutional clients a range of financial products and services. The Company offers retirement solutions, life and health insurance, wellness programs, and investment and banking products.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $21.19 and calculated resistance at $26.28. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Principal Financial shares.

Traders should evaluate their trade if they want to establish a position on Principal Financial given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.