PKG closes below its opening price unable to hold early session gains
Packaging Corporation of America (PKG) Technical Analysis Report for Apr 16, 2018
Moving higher for the 3rd day in a row, PKG finished Monday at 113.92 edging higher $0.38 (0.33%). Today's closing price of 113.92 marks the highest close since March 26th. Trading $0.65 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session.
Monday's trading range was $1.57 (1.37%), that's far below last trading month's daily average range of $2.79. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 112.85 and 115.17 which it has been in now for the last three days.
Prices are trading close to the key resistance level at 114.38. After spiking up to 115.17 during the day, the market found resistance at the 200-day moving average at 114.82.
Packaging Corporation shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the close-by swing low at 111.59 where further sell stops might get activated. With prices trading close to this year's low at 107.96, downside momentum could accelerate should the stock break out to new lows for the year.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being very bearish.
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