Prudential Jumps 3.50% As Technicals Signal Bullish Breakout Toward $25.58

Prudential (PUK) closed at $25.12, rising 3.50% in the most recent session. The technical analysis below evaluates key indicators to assess the stock’s current position and potential trajectory.
Candlestick Theory
Recent price action shows a bullish reversal pattern. The July 7th candle established a support base at $24.24 (wick low), followed by a strong bullish engulfing candle on July 8th, closing near its high of $25.19. Resistance is evident near the June 26th peak of $25.58, while support holds at $24.24–$24.40, validated by multiple tests in late June and early July. A close above $25.19 may signal continuation toward $25.58 resistance.
Moving Average Theory
The 50-day moving average (MA) near $24.50 was defended during the July 7th dip ($24.24), and the rebound above it suggests near-term bullish momentum. The 100-day MA ($23.10) and 200-day MA ($20.80) slope upward, confirming the long-term uptrend. Confluence exists as the 50-day MA crossed above both longer-term MAs in Q2 2025, reinforcing structural support. Price trading above all three averages supports a bullish bias.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging: the histogram turned positive on July 8th after the signal line stabilized near the zero axis, reflecting recovering momentum. The KDJ oscillator exited oversold territory (July 7th K-line: 20) and surged to 65, with the %K line crossing above %D, signaling strengthening upward momentum. This alignment suggests waning bearish pressure and potential trend reversal confirmation if momentum sustains.
Bollinger Bands
Volatility expanded as price rebounded from the lower band ($24.00–$24.25) to challenge the middle band (20-day SMA near $24.80). The July 8th close above the mid-band indicates regained momentum, while the upper band at $25.90 offers the next resistance. Band contraction in late June preceded the breakout, suggesting directional conviction in the rebound. A sustained move above $25.00 may trigger further band expansion.
Volume-Price Relationship
Volume surged 40% to 1.84 million shares on July 8th, validating the bullish breakout. This contrasts with the preceding downtrend’s lower-volume declines, confirming buyer conviction. Notably, volume expanded on the rebound from the $24.24 support, reinforcing the importance of this level. Persistent volume above the 10-day average (~1.1 million) would support continuation.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold (31) to a neutral 53, reflecting easing selling pressure. While not yet overbought, the swift recovery suggests improving momentum. Caution is warranted if RSI approaches 70 without price breaking $25.58, potentially signaling exhaustion. Currently, RSI divergence is absent, supporting the rebound’s sustainability.
Fibonacci Retracement
Applying Fibonacci to the June 26th high ($25.58) and July 7th low ($24.24) shows the rebound surpassed the 61.8% retracement ($25.07), closing just below the 78.6% level ($25.35). This strong recovery implies bullish dominance, targeting a full retracement to $25.58. The 50% ($24.91) and 61.8% levels now act as support if retested.
Confluence & Divergence
Confluence is evident at $24.24–$24.40 (candlestick low, Bollinger lower band, and volume-backed support), making it a critical floor. Bullish agreement includes volume-confirmed price reversal, RSI recovery, MACD/KDJ crossovers, and Fibonacci strength. No material divergences were observed; all momentum oscillators align with price action. The breakout above key MAs and Fibonacci levels suggests a high-probability path toward testing $25.58 resistance. Failure to breach $25.58 may trigger consolidation, but current signals favor upside continuation if volume persists.