A downward trendline following the stock- What lies ahead for Prudential stock?

Prudential has seen a major bearish trend since the beginning of 2023 seeing almost a 20% price slump in the past 6 months.
The stock currently trades near a major support level and is hanging just by a thread.
Earning reports for the company coming out in August end is the only ray of sunshine for the stock currently.

Prudential plc is a British multinational insurance company headquartered in London, England. It was founded in London in May 1848 to provide loans to professional and working people.The company has had a weak financial history and seen a significant decrease in revenue over the past 3 years.

Technical analysis for the stock

The charts for the stock currently look weak as there has been a major selling that has been taking place with sellers over powering the buyers at all the stages. The stock currently trades at its support at 1008£ and seeing the current momentum, chances for the stock to breach this level and slump even down are high.

If the stock does see a change of volumes and recovers from the current support level, we have a good upside target at 1160£ levels but the stock would need high buying volumes to achieve those levels.

We can see in the above chart that the stock has been respecting a bearish trendline and the trend is near its end. A big move is expected out of this trend for the stock with huge targets either side.

If the stock gives a breakout, then our major target would be at 1160£ as that levels have acted as a very strong resistance for the stock.

If the stock cannot hold its current levels, we have a big possible downside with the next strong support at 937£ for the stock.

The stock is currently a big opportunity for price action traders as there is a great setup forming in the stock currently. This might not be the best time to enter long until and unless we see a healthy breakout with huge buying volumes.

For the shorter run, most indicators are currently bearish for th stock which means a possible downside lies ahead for the stock. On the other hand, analysts have predicted a 50% price surge for the stock in the upcoming one year.

Conclusion

The stock is currently in a bearish cycle and is expected to slump even more in the upcoming weeks. One must wait for this momentum to end before entering long in the stock. A lower level than the current level can provide for good entry in the stock. One must wait for a good confirmation backed by huge buying volumes before entering long.