PKG breaks key support level
Packaging Corporation of America (PKG) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
PKG ended the week -0.75% lower at 110.56 after losing $1.00 (-0.9%) today. Today's closing price of 110.56 marks the lowest close since July 27th. Closing below Thursday's low at 110.82, Packaging Corporation confirms its breakout through the prior session's low having traded $0.61 below it intraday.
Daily Candlestick Chart (PKG as at Aug 10, 2018):
Friday's trading range was $0.94 (0.85%), that's below last trading month's daily average range of $1.83. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average.
Breaking below the key support level at 110.91 today, it is now likely to act as resistance going forward.
Though the market is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
With prices trading close to this year's low at 107.96, downside momentum could speed up should the share break out to new lows for the year. Further selling might move prices lower should the market test July's nearby low at 108.63.