Sunday, November 13, 2011 5:24:06 PM
Prudential Financial (PRU) -
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>>26 billion insurance and financial firm Prudential Financial (PRU) has been having an underwhelming year in 2011, dragged down by the sinking tide of the financial sector as a whole. But this stock could be on the verge of a turnaround thanks to an ostensibly bullish setup in shares.
From a technical standpoint, Prudential is mirroring the broad market right now. Shares had been hitting their head on $52 resistance for the last few months, only to break out above that level at the end of October. Now shares are forming a throwback, a return to retest that $52 level that’s now become support.
>>Top-Rated Insurance Stocks
Essentially, you can think of a throwback as a second chance to take a low-risk trade on a stock. While the initial breakout above $52 signaled a major shift in Prudential’s supply-demand equation, a bounce off of $52 now provides an entry at the same price (now that shares have confirmed demand there). The operative word here is “bounce” off of $52 -- we’ll want to see that that price is actually holding up as a support level now.
If you do decide to take this trade, I’d recommend placing a protective stop right at the 50-day moving average. <<<
http://stockpickr.com/5-breakout-trades-avoid-eurozone-fallout.html
>>>26 billion insurance and financial firm Prudential Financial (PRU) has been having an underwhelming year in 2011, dragged down by the sinking tide of the financial sector as a whole. But this stock could be on the verge of a turnaround thanks to an ostensibly bullish setup in shares.
From a technical standpoint, Prudential is mirroring the broad market right now. Shares had been hitting their head on $52 resistance for the last few months, only to break out above that level at the end of October. Now shares are forming a throwback, a return to retest that $52 level that’s now become support.
>>Top-Rated Insurance Stocks
Essentially, you can think of a throwback as a second chance to take a low-risk trade on a stock. While the initial breakout above $52 signaled a major shift in Prudential’s supply-demand equation, a bounce off of $52 now provides an entry at the same price (now that shares have confirmed demand there). The operative word here is “bounce” off of $52 -- we’ll want to see that that price is actually holding up as a support level now.
If you do decide to take this trade, I’d recommend placing a protective stop right at the 50-day moving average. <<<
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