PPL stuck within tight trading range
PPL Corporation (PPL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PPL finished Wednesday at 28.01 gaining $0.29 (1.05%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PPL as at Sep 16, 2020):
Wednesday's trading range has been $0.62 (2.24%), that's slightly above the last trading month's daily average range of $0.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 27.58 and 28.30 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 27.91 for the first time since September 4th. The market found buyers again today around 27.64 for the third trading day in a row after having found demand at 27.58 in the previous session and at 27.66 two days ago. The last time this happened on August 25th, PPL actually lost -0.86% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 28.30 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 27.58 where further sell stops could get triggered. As prices are trading close to September's high at 28.81, upside momentum might accelerate should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for PPL. Out of 151 times, PPL closed higher 57.62% 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 54.97% with an average market move of 0.38%.