4 Trade Ideas for Prudential Financial: Bonus Idea

• Posted by Greg Harmon
• on March 18th, 2024

Here is your Bonus Idea with links to the full Top Ten:

Prudential Financial, $PRU, comes into the week at resistance. The Bollinger Bands® are open higher as price has been following them up. The RSI is in the bullish zone with the MACD positive and rising. Both have room below prior peaks. There is resistance at 113 then back to early 2022 at 115 and 120 before back to early 2018 at 126. There is support at 109.50 and 107. Short interest is low at 1.6%. The stock pays a dividend with an annual yield of 4.61% and has traded ex-dividend since February 16th.

The company is expected to report earnings next on April 30th. The April options chain shows open interest build from 100 to a peak at 97.50 on the put side and it is focused form 110 to 120, biggest at 115, on the call side. The May chain is just getting started. The June chain has big open interest at the 105 and 80 put strikes then at 115 and 100. On the call side it is spread from 80 to 120.

Prudential Financial, Ticker: $PRU

Trade Idea 1: Buy the stock on a move over 113 with a stop at 107.

Trade Idea 2: Buy the stock on a move over 113 and add an April 110/105 Put Spread (95 cents) while selling the May 125 Call (55 cents).

Trade Idea 3: Buy the April/May 120 Call Calendar ($1.15) while selling the May 105 Put ($1.10).

Trade Idea 4: Buy the June 105/120/130 Call Spread Risk Reversal (5 cent credit).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the March Quadruple Witching in the books and heading into the March FOMC meeting, saw equity markets showing some weakness after the long run higher.

Elsewhere look for Gold to continue its uptrend while Crude Oil shows short term strength. The US Dollar Index continues in consolidation while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue the short term move higher while Emerging Markets consolidate.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. The SPY and QQQ charts look strong on the longer timeframe, perhaps building bull flags. On the shorter timeframe though both are showing some weakness as they reset momentum measures lower in the bullish range. The short term weakness in the IWM is threatening to turn into a failed break out. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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