PKG closes higher for the 3rd day in a row


Packaging Corporation of America (PKG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

PKG breaks back above 20-day moving average
PKG dominated by bulls lifting the market higher throughout the day
PKG closes higher for the 3rd day in a row
PKG pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, PKG ended Thursday at 87.27 gaining $7.44 (9.32%) on low volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 83.64, the market confirmed its breakout through the prior session high after trading up to $4.51 above it intraday.

Daily Candlestick Chart (PKG as at Mar 26, 2020):

Daily technical analysis candlestick chart for Packaging Corporation of America (PKG) as at Mar 26, 2020

Thursday's trading range has been $7.95 (9.88%), that's slightly above the last trading month's daily average range of $6.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PKG.

One bullish candlestick pattern matches today's price action, the White Candle.

The stock managed to close back above the 20-day moving average at 86.86 for the first time since March 17th. When this moving average was crossed above the last time on March 17th, PKG actually lost -2.89% on the following trading day. Prices are trading close to the key technical resistance level at 90.67 (R1).

While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Packaging. Out of 178 times, PKG closed higher 51.12% 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 57.30% with an average market move of 1.08%.


Market Conditions for PKG as at Mar 26, 2020

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