PEG soars $3.55 (6.78%) after posting strong earnings
Public Service Enterprise Group Incorporated (PEG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PEG finished the month 13.79% higher at 55.94 after surging $3.55 (6.78%) today on high volume, significantly outperforming the S&P 500 (0.77%) following today's earnings report. This is the biggest single-day gain in over two months. Today's close at 55.94 marks the highest recorded closing price since February 25th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 52.55, Public Service confirmed its breakout through the previous session high after trading up to $3.58 above it intraday.
Daily Candlestick Chart (PEG as at Jul 31, 2020):
PEG reported earnings of $0.79 per share before today's market open. With analysts having expected an EPS of $0.59, Public Service Enterprise Group Incorporated surpassed market expectations by 33.9%. The company's last earnings report was released on May 4, 2020, when Public Service Enterprise Group Incorporated reported earnings of $1.03 per share meeting market expectations.
Friday's trading range has been $3.82 (7.28%), that's far above the last trading month's daily average range of $1.42. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PEG.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 200-day moving average at 54.16 for the first time since July 17th. When this moving average was crossed above the last time on July 17th, PEG actually lost -4.10% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 17th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 52.21 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Public Service. Out of 85 times, PEG closed lower 58.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.82% with an average market move of -0.89%.