PCG closes lower for the 9th day in a row
Pacific Gas & Electric Co. (PCG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 9th day in a row, PCG ended the month -25.21% lower at 8.87 after losing $0.19 (-2.1%) today, strongly underperforming the S&P 500 (1.54%). Today's close at 8.87 marks the lowest recorded closing price since April 7th. Closing below Monday's low at 8.90, the stock confirmed its breakout through the prior session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (PCG as at Jun 30, 2020):
Tuesday's trading range has been $0.52 (5.76%), that's slightly below the last trading month's daily average range of $0.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PCG.
After trading down to 8.65 earlier during the day, the market bounced off the key technical support level at 8.81 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 26th, PCG actually lost -0.77% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to April's low at 7.85 we could see further downside momentum if potential sell stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "9 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pacific Gas. Out of 1 times, PCG closed higher 100.00% 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 five trading days, showing a win rate of 100.00% with an average market move of 22.54%.