Prudential Financial Extends Losses To 4.52% Amid Bearish Technical Breakdown

Prudential Financial (PRU) concluded the latest session at $102.15, down 3.13% and extending its losing streak to three consecutive days with a cumulative 4.52% decline. This negative momentum forms the immediate backdrop for our technical assessment.
Candlestick Theory
Recent price action reveals a bearish breakdown pattern. The formation of three consecutive bearish candles culminating in a long red body on September 16th ($105.395 high to $101.64 low) signals strong selling pressure. This breakdown occurred below the key support zone of $105.28-$106.38 established over prior sessions, converting this level to immediate resistance. The current support emerges near the September 16th low of $101.64, with additional psychological support at $100. Volume expansion during the decline validates the bearish sentiment.
Moving Average Theory
The stock trades below all critical moving averages, confirming a bearish hierarchy. Current price ($102.15) sits decisively under the 50-day MA (approximately $105.50), the 100-day MA (near $106.80), and the 200-day MA (around $108.30). The configuration shows the 50-day MA crossed below the 100-day MA in mid-August, while both remain beneath the 200-day MA. This "death cross" structure reinforces a sustained downtrend across timeframes.
MACD & KDJ Indicators
MACD metrics display bearish momentum, with the MACD line (-1.85) below the signal line (-1.40) and a widening negative histogram. This signals accelerating downward pressure. KDJ readings show the %K line (18) and %D line (24) penetrating oversold territory (<20) but without bullish reversal signals. Continuous closes near session lows suppress the stochastic rebound potential, suggesting oversold conditions could persist amid strong downside momentum.
Bollinger Bands
Heightened volatility is evident as price pierced the lower Bollinger Band ($103.80) on September 16th while bands expanded from a contraction phase in early September. This violation, combined with the recent band expansion, typically precedes sustained directional moves. Closure below the lower band implies potential continuation of bearish momentum, though a retracement to test the $103.80 breakdown level remains possible.
Volume-Price Relationship
Trading volume provides critical confirmation, with the three-day downturn registering progressively higher volume (1.63M → 1.81M → 2.57M shares). The climax volume on September 16th coincides with the sharpest price decline, indicating conviction behind the bearish move. Absent volume-supported recovery attempts, the current downtrend appears institutionally validated.
Relative Strength Index (RSI)
The 14-day RSI reads 29.8, technically entering oversold territory. However, this oversold signal carries reduced reliability amid strong bearish momentum. Notably, prior instances of sub-30 RSI in early August and April failed to generate immediate recoveries. While warranting monitoring for reversal signals, oversold RSI alone does not override the established downtrend without bullish confirmation.
Fibonacci Retracement
Using the recent swing high of $107.435 (September 12th) and swing low of $101.64 (September 16th), key retracement levels are identified: 23.6% ($103.06), 38.2% ($104.24), and 50% ($104.54). Current price action below the 23.6% level highlights bearish dominance. A recovery above $103.06 would signal potential stabilization, though the clustering of moving averages near $104.30-$104.50 creates a formidable resistance confluence at the 38.2%-50% retracement zone.
Confluence and Divergence Observations
Multiple indicators converge to support bearish bias: breakdown candlesticks confirmed by elevated volume, price trading below all major moving averages, MACD momentum deterioration, and sustained Bollinger Band violation. A notable divergence exists between the oversold RSI/KDJ readings and ongoing price weakness, suggesting bearish momentum may temporarily override typical oversold reversals. The Fibonacci resistance cluster near $104.30-$104.50 aligns closely with the 50-day MA and 38.2% retracement, creating a critical technical resistance zone for any recovery attempts.