PNC finds buyers around 102.59 for the third day in a row
PNC Financial Services Group Inc. (PNC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PNC ended the week 7.57% higher at 104.61 after gaining $1.42 (1.38%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.95 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, PNC gained 7.00% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PNC as at May 22, 2020):
Friday's trading range has been $2.27 (2.19%), that's far below the last trading month's daily average range of $3.82. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PNC. Prices continued to consolidate within a tight trading range between 100.11 and 105.47 where it has been caught now for the whole last trading week.
Buyers managed to take out the key technical resistance level at 104.17 (now S1), which is likely to act as support going forward. PNC Financial found buyers again today around 102.59 for the third trading day in a row after having found demand at 102.67 in the previous session and at 102.71 two days ago.
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 nearby swing high at 105.47 where further buy stops could get triggered. As prices are trading close to May's high at 105.96, upside momentum might accelerate should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for PNC Financial. Out of 117 times, PNC closed higher 53.85% 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 64.10% with an average market move of 0.79%.