PCG closes below its opening price unable to hold early session gains
Pacific Gas & Electric Co. (PCG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PCG ended Wednesday at 9.79 edging higher $0.01 (0.1%) on high volume, outperforming the S&P 500 (-0.46%). Today's close at 9.79 marks the highest recorded closing price since June 24th. Trading $0.08 higher after the open, the market was unable to hold its gains as the bears took control ending the day below 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 Sep 16, 2020):
Wednesday's trading range has been $0.19 (1.93%), that's far below the last trading month's daily average range of $0.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PCG.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on September 1st, PCG actually gained 1.64% on the following trading day.
Prices are trading close to the key technical support level at 9.66 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 9.21.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 9.98 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Pacific Gas. Out of 208 times, PCG closed higher 56.25% 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 six trading days, showing a win rate of 53.37% with an average market move of -0.04%.