PKG pushes through key technical resistance level
Packaging Corporation of America (PKG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PKG finished the month -1.59% lower at 99.80 after gaining $1.78 (1.82%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 99.50, the stock confirmed its breakout through the previous session high after trading up to $0.81 above it intraday.
Daily Candlestick Chart (PKG as at Jun 30, 2020):
Tuesday's trading range has been $3.20 (3.28%), that's slightly above the last trading month's daily average range of $3.03. 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 lower than usual for PKG.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 99.75 (now S1), which is likely to act as support going forward. The last time this happened on June 23rd, PKG actually lost -2.00% on the following trading day. After having been unable to move lower than 96.75 in the prior session, Packaging found buyers again around the same price level today at 97.11.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 100.60 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Packaging. Out of 502 times, PKG closed higher 52.19% 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 58.96% with an average market move of 1.00%.