PNW pops to highest close since March 11th
Pinnacle West Capital Corporation (PNW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PNW ended the month 13.36% higher at 83.08 after gaining $0.38 (0.46%) today on high volume, slightly underperforming the S&P 500 (0.77%). Today's close at 83.08 marks the highest recorded closing price since March 11th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PNW as at Jul 31, 2020):
Friday's trading range has been $2.66 (3.28%), that's far above the last trading month's daily average range of $1.78. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PNW.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 82.02 (S1). Pinnacle West found buyers again today around 80.59 for the third trading day in a row after having found demand at 80.43 in the previous session and at 80.73 two days ago. The last time this happened on April 17th, PNW actually lost -4.14% on the following trading day.
Although 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 83.40 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Pinnacle West. Out of 84 times, PNW closed higher 55.95% 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 eight trading days, showing a win rate of 58.33% with an average market move of 0.26%.