Principal Financial Close to Resistance

Published on Tuesday, 31 August 2010 04:52 Written by Christopher Lynn

New York, August 31st (TradersHuddle.com) - Shares of Principal Financial Group, Inc. (NYSE:PFG) are trading very close to calculated resistance at $23.22 with the current price action closing at just $22.51 placing the stock near levels that make it difficult to buy.

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.

Principal Financial's current stock range is defined by current calculated support defined at $21.19 and by the resistance level at $23.22, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Principal Financial, as the stock is well above support, however, as the stock pulls back towards $21.19 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $23.22 then traders will get an opportunity to enter Principal Financial stock by establishing a position as the stock moves to a higher range.