PPG closes within previous day's range after lackluster session


PPG Industries Inc. (PPG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

PPG rises to highest close since April 9th
PPG finds buyers around 94.48 for the third day in a row
PPG closes above its opening price after recovering from early selling pressure
PPG stuck within tight trading range
PPG closes within previous day's range after lackluster session

Overview

PPG finished the week 10.65% higher at 96.18 after gaining $1.09 (1.15%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 96.18 marks the highest recorded closing price since April 9th. Trading up to $0.66 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, PPG gained 1.49% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (PPG as at May 22, 2020):

Daily technical analysis candlestick chart for PPG Industries Inc. (PPG) as at May 22, 2020

Friday's trading range has been $1.76 (1.85%), that's below the last trading month's daily average range of $3.04. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PPG. Prices continued to consolidate within a tight trading range between 94.48 and 96.44 where it has been caught now for the last three trading days.

Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.

The market found buyers again today around 94.48 for the third trading day in a row after having found demand at 94.61 in the previous session and at 94.64 two days ago.

While still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Buying might accelerate should prices move above the close-by swing high at 96.44 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 99.09.

Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for PPG. Out of 765 times, PPG closed higher 53.59% 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 58.69% with an average market move of 0.72%.


Market Conditions for PPG as at May 22, 2020

Loading Market Conditions for PPG (PPG Industries Inc.)...
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