PPG closes below its opening price unable to hold early session gains
PPG Industries Inc. (PPG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PPG finished the week -2.01% lower at 120.15 after edging lower $0.31 (-0.26%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.53 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 4th, PPG actually gained 1.90% on the following trading day. Closing below Thursday's low at 120.32, the share confirmed its breakout through the previous session low after trading up to $0.81 below it intraday.
Daily Candlestick Chart (PPG as at Feb 14, 2020):
Friday's trading range has been $1.43 (1.19%), that's below the last trading month's daily average range of $1.90. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PPG.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading as low as 119.51 during the day, the stock found support at the 200-day moving average at 119.98. Prices broke below the key technical support level at 120.36 (now R1), which is likely to act as resistance going forward.
PPG shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 119.35, downside momentum could accelerate should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for PPG. Out of 14 times, PPG closed higher 64.29% 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 71.43% with an average market move of 1.68%.