PPG finds support at 50-day moving average
PPG Industries Inc. (PPG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PPG ended the month 1.5% higher at 107.65 after edging lower $0.55 (-0.51%) today, notably underperforming the S&P 500 (0.77%). Today's close at 107.65 marks the lowest recorded closing price since July 10th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PPG as at Jul 31, 2020):
Friday's trading range has been $2.33 (2.16%), that's slightly below the last trading month's daily average range of $2.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PPG.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading as low as 105.94 during the day, the market found support at the 50-day moving average at 106.79. The last time this happened on May 11th, PPG actually lost -3.09% on the following trading day. Prices are trading close to the key technical resistance level at 108.35 (R1).
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 103.58, downside momentum could speed up should the stock mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for PPG. Out of 254 times, PPG closed higher 56.69% 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 55.91% with an average market move of 0.82%.