Resistance Above for Principal Financial?

Published on Thursday, 02 September 2010 05:08 Written by Christian Paolinetti

New York, September 2nd (TradersHuddle.com) - Shares of Principal Financial Group, Inc. (NYSE:PFG) closed the trading session at $24.46 near its 50 day and 200 day moving averages currently set at $24.07 and $25.60 respectively. Principal Financial's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

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 price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Principal Financial with a small position and wait for the stock to break out above the 200 day moving average at $25.60, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $24.07 breaks it could mean further downside in the horizon for Principal Financial.