PGX finds buyers again around 14.08
Invesco Preferred (PGX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
PGX ended the month -1.81% lower at 14.12 after flat today on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PGX as at Jun 30, 2020):
Tuesday's trading range has been $0.10 (0.71%), that's slightly below the last trading month's daily average range of $0.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PGX. Prices continued to consolidate within a tight trading range between 14.08 and 14.18 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns.
After trading down to 14.08 earlier during the day, the ETF bounced off the key technical support level at 14.10 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 15th, PGX gained 0.92% on the following trading day. After spiking up to 14.18 during the day, Invesco Preferred found resistance at the 50-day moving average at 14.17. After having been unable to move lower than 14.08 in the prior session, the market found buyers again around the same price level today at 14.08.
PGX shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 14.03, downside momentum might speed up should the ETF mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Invesco Preferred. Out of 25 times, PGX closed higher 48.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.00% with an average market move of 0.29%.