PPG pushes through key technical resistance level
PPG Industries Inc. (PPG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PPG ended Thursday at 89.76 gaining $4.05 (4.73%) on low volume, notably underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 89.58, the stock confirmed its breakout through the previous session high after trading up to $0.81 above it intraday.
Daily Candlestick Chart (PPG as at Mar 26, 2020):
Thursday's trading range has been $5.39 (6.25%), that's slightly below the last trading month's daily average range of $6.04. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 86.44 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 95.33 (R1). After having been unable to move above 89.58 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 90.39. The last time this happened on Monday, PPG actually gained 13.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 95.33 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for PPG. Out of 222 times, PPG closed higher 53.60% 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 65.77% with an average market move of 0.93%.