PNC dominated by bulls lifting the market higher throughout the day
PNC Financial Services Group Inc. (PNC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PNC finished the month -7.74% lower at 105.21 after gaining $2.38 (2.31%) today, 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 103.62, the market confirmed its breakout through the previous session high after trading up to $2.42 above it intraday.
Daily Candlestick Chart (PNC as at Jun 30, 2020):
Tuesday's trading range has been $4.05 (3.97%), that's slightly below the last trading month's daily average range of $4.67. Weekly volatility is also lower, being way 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 106.91 where it has been caught now for the whole last trading week.
Despite a weak opening PNC Financial managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on April 2nd, PNC actually lost -6.11% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 103.15 (now S1), which is likely to act as support going forward. After having been unable to move lower than 101.55 in the previous session, the share found buyers again around the same price level today at 101.99.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 106.91 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 100.11 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for PNC Financial. Out of 256 times, PNC closed higher 51.17% 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 61.33% with an average market move of 0.62%.