PNW finds support at 50-day moving average
Pinnacle West Capital (PNW) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
PNW finished the week -0.37% lower at 81.50 after edging higher $0.20 (0.25%) today, significantly underperforming the S&P 500 (1.42%). Trading up to $0.94 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PNW as at Oct 12, 2018):
Friday's trading range has been $1.29 (1.59%), that's slightly below the last trading month's daily average range of $1.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PNW.
After trading as low as 80.22 during the day, the market found support at the 50-day moving average at 80.40. The last time this happened on September 18th, PNW actually lost -2.21% on the following trading day. Prices are trading close to the key technical resistance level at 82.38 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Pinnacle West. Out of 46 times, PNW closed higher 67.39% 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 56.52% with an average market move of 0.86%.