PPG closes within prior day's range
PPG Industries Inc. (PPG) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
PPG finished the week 0.36% higher at 110.03 after gaining $0.35 (0.32%) today on high volume, slightly underperforming the S&P 500 (0.5%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PPG as at Mar 15, 2019):
Friday's trading range has been $1.36 (1.24%), that's slightly below the last trading month's daily average range of $1.56. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PPG.
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.
Prices are trading close to the key technical resistance level at 110.98 (R1). After having been unable to move lower than 108.99 in the previous session, the stock found buyers again around the same price level today at 109.14. The last time this happened on Wednesday, PPG actually lost -1.48% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 108.99 where further sell stops might get activated. With prices trading close to this year's high at 113.31, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for PPG. Out of 640 times, PPG closed higher 53.91% 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 58.28% with an average market move of 0.82%.