PNW runs into sellers again around 73.03
Pinnacle West Capital Corporation (PNW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PNW ended Wednesday at 72.30 gaining $0.28 (0.39%), 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 in a lackluster session.
Daily Candlestick Chart (PNW as at Sep 16, 2020):
Wednesday's trading range has been $1.13 (1.57%), that's below the last trading month's daily average range of $1.60. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PNW.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 71.27 (S1). After having been unable to move above 73.25 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 73.03. The last time this happened on September 8th, PNW lost -0.75% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 73.25 where further buy stops could get triggered. As prices are trading close to September's high at 74.78, upside momentum might speed up should Pinnacle West mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Pinnacle West. Out of 729 times, PNW closed higher 53.09% 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 54.73% with an average market move of 0.29%.