PCG closes above its opening price after recovering from early selling pressure
Pacific Gas & Electric Co. (PCG) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
PCG finished Monday at 9.13 edging higher $0.03 (0.33%) on low volume, slightly outperforming the S&P 500 (0.27%). Trading up to $0.04 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 Aug 10, 2020):
Monday's trading range has been $0.11 (1.21%), that's far below the last trading month's daily average range of $0.31. 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 8.86 and 9.25 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move lower than 9.02 in the prior session, Pacific Gas found buyers again around the same price level today at 9.05. The last time this happened on August 6th, PCG lost 0.00% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 9.18 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 8.81 where further sell stops might get activated. Further buying could move prices higher should the market test July's nearby high at 9.66.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Pacific Gas. Out of 564 times, PCG closed higher 52.66% 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 seven trading days, showing a win rate of 52.30% with an average market move of 0.31%.