PNC closes above its opening price after recovering from early selling pressure
PNC Financial Services Group Inc. (PNC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PNC finished the month 1.39% higher at 106.67 after gaining $0.40 (0.38%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $1.65 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 106.62, the share confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (PNC as at Jul 31, 2020):
Friday's trading range has been $2.72 (2.57%), that's slightly below the last trading month's daily average range of $2.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PNC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on Wednesday, PNC actually lost -2.46% on the following trading day.
After trading as low as 104.06 during the day, the stock found support at the 20-day moving average at 104.14. PNC Financial was bought again around 104.06 after having seen lows at 104.34, 104.05 and 104.41 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 109.30 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 104.05 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Its common bullish interpretation has been confirmed for PNC Financial. Out of 25 times, PNC closed higher 56.00% 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 64.00% with an average market move of 1.05%.