PPG breaks below Thursday's low
PPG Industries (PPG) Technical Analysis Report for Oct 12, 2018
Moving lower for the 2nd day in a row, PPG finished the week -11.97% lower at 95.09 after losing $1.29 (-1.34%) today, notably underperforming the S&P 500 (1.42%). Today's close at 95.09 marks the lowest recorded closing price since December 30, 2016. Closing below Thursday's low at 96.11, the stock confirmed its breakout through the previous session low after trading up to $1.71 below it intraday.
Daily Candlestick Chart (PPG as at Oct 12, 2018):
Friday's trading range has been $3.59 (3.69%), that's far above the last trading month's daily average range of $2.14. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PPG.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 108.52.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PPG Industries. Out of 456 times, PPG closed higher 55.48% 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 59.21% with an average market move of 1.01%.