PNC pushes through key technical resistance level
PNC Financial Services Group Inc. (PNC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PNC ended Wednesday at 113.64 gaining $2.35 (2.11%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PNC as at Sep 16, 2020):
Wednesday's trading range has been $4.39 (3.95%), that's far above the last trading month's daily average range of $2.94. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PNC. Prices continued to consolidate within a tight trading range between 110.70 and 115.13 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 111.83 (now S1), which is likely to act as support going forward. The last time this happened on Monday, PNC actually lost -2.53% on the following trading day. PNC Financial found buyers again today around 110.74 for the third trading day in a row after having found demand at 110.70 in the previous session and at 111.23 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 110.70 where further sell stops might get triggered. As prices are trading close to September's high at 116.67, upside momentum could speed up should the market mark new highs for the month.
Among the five 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 122 times, PNC closed higher 53.28% 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 65.57% with an average market move of 1.04%.