PCG closes lower for the 4th day in a row
Pacific Gas & Electric Co. (PCG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, PCG finished the week -6.63% lower at 16.20 after losing $0.56 (-3.34%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 16.52, the market confirmed its breakout through the previous session low after trading up to $0.74 below it intraday.
Daily Candlestick Chart (PCG as at Feb 14, 2020):
Friday's trading range has been $1.05 (6.26%), that's slightly above the last trading month's daily average range of $0.88. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PCG.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading down to 15.78 earlier during the day, the share bounced off the key technical support level at 15.83 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 22nd, PCG gained 9.49% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Pacific Gas. Out of 63 times, PCG closed higher 58.73% 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 65.08% with an average market move of 2.45%.