PEG breaks back above 200-day moving average
Public Service Enterprise Group Incorporated (PEG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PEG ended Wednesday at 53.00 surging $1.35 (2.61%), strongly outperforming the S&P 500 (-0.46%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 52.69, the stock confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (PEG as at Sep 16, 2020):
Wednesday's trading range has been $1.71 (3.31%), that's far above the last trading month's daily average range of $1.18. 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 lower than usual for PEG. Prices continued to consolidate within a tight trading range between 51.46 and 53.37 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 200-day moving average at 52.89 for the first time since September 9th. After spiking up to 53.17 during the day, Public Service found resistance at the 50-day moving average at 53.15. The last time this happened on August 31st, PEG lost -2.37% on the following trading day. After having been unable to move lower than 51.48 in the prior session, the share found buyers again around the same price level today at 51.46.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Public Service. Out of 28 times, PEG closed higher 60.71% 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 53.57% with an average market move of 0.12%.