PPG unable to break through key resistance level
PPG Industries Inc. (PPG) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
PPG ended the week 6.62% higher at 85.00 after losing $4.76 (-5.3%) today on low volume, notably underperforming the S&P 500 (-3.37%). Trading $1.09 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (PPG as at Mar 27, 2020):
Friday's trading range has been $2.83 (3.28%), that's far below the last trading month's daily average range of $5.97. 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 slightly higher than usual for PPG.
Unable to break through the key technical resistance level at 86.44 (R1), the market closed below it after spiking up to 87.28 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 85.00 in the prior session, the share found buyers again around the same price level today at 84.45. The last time this happened on Monday, PPG 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 could accelerate should prices move above the close-by swing high at 90.39 where further buy stops might get triggered.
Among the six 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for PPG. Out of 447 times, PPG closed higher 55.03% 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 58.61% with an average market move of 0.83%.