PCG finds buyers around 18.00 for the third day in a row
Pacific Gas & Electric Co. (PCG) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
PCG finished Wednesday at 18.06 losing $0.30 (-1.63%), significantly underperforming the S&P 500 (0.58%). Today's close at 18.06 marks the lowest recorded closing price since April 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PCG as at May 15, 2019):
Wednesday's trading range has been $0.44 (2.4%), that's far below the last trading month's daily average range of $0.89. 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 PCG. Prices continued to consolidate within a tight trading range between 17.96 and 18.44 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Tweezer Bottom showed up on January 17th, PCG gained 13.68% on the following trading day.
The market closed below the 100-day moving average at 18.12 for the first time since April 10th. Pacific Gas found buyers again today around 18.00 for the third trading day in a row after having found demand at 18.00 in the previous session and at 17.96 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 17.96 where further sell stops might get triggered. Further selling could move prices lower should the market test April's nearby low at 17.18.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Pacific Gas. Out of 75 times, PCG closed higher 57.33% 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 62.67% with an average market move of 0.15%.