Holy cow wasn't expecting that- it really did spring out of the...

Holy cow wasn't expecting that- it really did spring out of the wedge didn't it? That's why some people call them coils I guess...

So now looking for another entry point, but here's the thing- I'm too chicken to buy where it sits at the moment. Why? Well it's really rare for any stock to go more than 3 days with closes above the upper Bollinger Band without some sort of pullback or at least a small bull flag type of consolidation, and PRU is no exception (so far anyway). It's not impossible or unheard of, just not very common. BB's can be used as another way to look at "oversold" and "overbought" levels in addition to indicators such as RSI and CCI etc. I've circled in red on my chart the last 4 times price has had 3 consecutive closes above the upper BB (well the 3rd one is actually 3 out of 4 closes but I circled it anyway)- all followed by a pullback of some sort. So I'm looking to buy on a pullback.

Often there's an early warning of an upcoming pullback or at least some sideways movement. One reliable warning is the appearance of a narrow spread bar on high volume, even if it is an up bar. If the volume is high without making the same sort of upwards progress as the last few bars then selling pressure has appeared. There's a couple of examples of this on the chart, but nothing like that has appeared yet. In fact this up move still looks as strong as an ox, sure it closed a bit off the high showing some profit taking but nothing major and nothing with a quick peek at the 15 minute intraday chart either. So who knows, maybe this parabolic rise will continue a bit longer!!

Sounds a bit negative talking about the next drop in price while in the middle of a breakout but it's not meant to be . I just like to plan ahead and using the charts to go through the most likely scenarios helps me do that. Good luck all .