PEG finds buyers at key support level
Public Service Enterprise Group Incorporated (PEG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PEG ended the week 1.35% higher at 58.48 after gaining $0.12 (0.21%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.13 higher after the open, Public Service 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PEG as at Feb 14, 2020):
Friday's trading range has been $0.35 (0.6%), that's far below the last trading month's daily average range of $0.88. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PEG.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 58.33 earlier during the day, the share bounced off the key technical support level at 58.39 (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 5th, PEG actually lost -1.60% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four 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 Public Service. Out of 497 times, PEG closed higher 57.14% 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 55.13% with an average market move of 0.41%.