PCH runs into sellers again around 43.44
PotlatchDeltic Corporation (PCH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PCH finished Wednesday at 42.34 losing $0.78 (-1.81%) on high volume, significantly underperforming the S&P 500 (-0.46%). Today's close at 42.34 marks the lowest recorded closing price since July 22nd. Closing below Tuesday's low at 42.64, the share confirmed its breakout through the prior session low after trading up to $0.52 below it intraday.
Daily Candlestick Chart (PCH as at Sep 16, 2020):
Wednesday's trading range has been $1.32 (3.05%), that's slightly above the last trading month's daily average range of $1.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PCH.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 4th, PCH lost -2.56% on the following trading day.
Prices are trading close to the key technical support level at 41.86 (S1). After having been unable to move above 43.39 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 43.44.
Though PotlatchDeltic is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 41.74 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PotlatchDeltic. Out of 520 times, PCH closed higher 54.81% 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 53.27% with an average market move of 0.35%.