PPL closes above its opening price after recovering from early selling pressure
PPL Corporation (PPL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PPL finished the month -7.52% lower at 25.84 after gaining $0.08 (0.31%) today, strongly underperforming the S&P 500 (1.54%). Trading up to $0.42 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 25.83, the stock confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (PPL as at Jun 30, 2020):
Tuesday's trading range has been $0.61 (2.36%), that's below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PPL. Prices continued to consolidate within a tight trading range between 24.91 and 25.99 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on April 21st, PPL gained 3.01% on the following trading day.
After trading down to 25.38 earlier during the day, the share bounced off the key technical support level at 25.79 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 25.34 in the previous session, PPL found buyers again around the same price level today at 25.38.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 24.91 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PPL. Out of 489 times, PPL closed higher 58.69% 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 55.42% with an average market move of 0.17%.