PNC breaks below key technical support level
PNC Financial Services Group Inc. (PNC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PNC finished the week 0.51% higher at 154.13 after losing $1.19 (-0.77%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday.
Daily Candlestick Chart (PNC as at Feb 14, 2020):
Friday's trading range has been $2.26 (1.46%), that's slightly above the last trading month's daily average range of $2.15. 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 lower than usual for PNC.
Prices broke below the key technical support level at 154.42 (now R1), which is likely to act as resistance going forward. After having been unable to move above 155.55 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 155.44. The last time this happened on Monday, PNC actually gained 0.60% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PNC Financial. Out of 581 times, PNC closed higher 50.26% 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 58.69% with an average market move of 0.60%.