PCH runs into sellers again around 42.34
PotlatchDeltic Corporation (PCH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PCH ended the week 4.68% higher at 42.01 after losing $0.15 (-0.36%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PCH as at Feb 14, 2020):
Friday's trading range has been $0.86 (2.03%), that's slightly below the last trading month's daily average range of $1.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PCH.
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 trading down to 41.48 earlier during the day, the market bounced off the key technical support level at 41.79 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on February 4th, PCH gained 4.30% on the following trading day. Prices are trading close to the key technical resistance level at 42.43 (R1). After having been unable to move above 42.39 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 42.34.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 42.39 where further buy stops could get triggered. As prices are trading close to February's high at 43.35, upside momentum might accelerate should PotlatchDeltic mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PotlatchDeltic. Out of 503 times, PCH closed higher 55.67% 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 53.08% with an average market move of 0.32%.