PCG closes above its opening price after recovering from early selling pressure
Pacific Gas & Electric Co. (PCG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PCG ended the month 5.41% higher at 9.35 after gaining $0.07 (0.75%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.21 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PCG as at Jul 31, 2020):
Friday's trading range has been $0.39 (4.22%), that's slightly above the last trading month's daily average range of $0.38. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PCG.
Prices are trading close to the key technical resistance level at 9.59 (R1). After having been unable to move lower than 9.04 in the prior session, the market found buyers again around the same price level today at 9.04. The last time this happened on July 24th, PCG actually lost -3.31% on the following trading day.
Though Pacific Gas is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 9.53 where further buy stops could get activated. As prices are trading close to July's high at 9.66, upside momentum might speed up should the stock mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Pacific Gas. Out of 171 times, PCG closed higher 56.73% 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 two trading days, showing a win rate of 49.71% with an average market move of 0.09%.