PNW closes above its opening price after recovering from early selling pressure
Pinnacle West Capital Corporation (PNW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PNW finished the month -5.92% lower at 73.29 after gaining $0.33 (0.45%) today, notably underperforming the S&P 500 (1.54%). Trading up to $0.52 lower after the open, Pinnacle West managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 72.96, the share confirmed its breakout through the prior session high after trading up to $0.62 above it intraday.
Daily Candlestick Chart (PNW as at Jun 30, 2020):
Tuesday's trading range has been $1.25 (1.72%), that's far below the last trading month's daily average range of $2.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PNW.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test May's nearby low at 69.56.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Pinnacle West. Out of 328 times, PNW closed higher 53.05% 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 53.96% with an average market move of 0.30%.