PPG breaks below Wednesday's low
PPG Industries Inc. (PPG) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PPG ended Thursday at 109.62 losing $0.60 (-0.54%), underperforming the S&P 500 (0.25%). Today's close at 109.62 marks the lowest recorded closing price since June 3rd. Closing below Wednesday's low at 109.86, the market confirmed its breakout through the previous session low after trading up to $0.91 below it intraday.
Daily Candlestick Chart (PPG as at Aug 15, 2019):
Thursday's trading range has been $1.91 (1.73%), that's slightly below the last trading month's daily average range of $2.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PPG.
Prices are trading close to the key technical support level at 108.35 (S1). The stock closed below the 200-day moving average at 110.14 for the first time since June 3rd. When this moving average was crossed below the last time on May 23rd, PPG actually gained 0.87% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PPG. Out of 368 times, PPG closed higher 54.89% 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 57.34% with an average market move of 0.90%.