PG&E Corp. (PCG) broke out to the upside in late January, but the move probably isn't over.
In the chart, above, you can see how PCG rallied through the resistance in the $54-$55 area with a rising 50-day moving average, a rising On-Balance-Volume (OBV) line and a bullish Moving Average Convergence Divergence (MACD) oscillator. The $51-$54 area should now act as support on declines.
This longer-term chart of PCG, above, has some interesting features -- prices have firmed above the 40-week moving average and the average is just starting to turn up. The OBV line is rising on this timeframe for the past two years! This kind of accumulation is significant. The weekly MACD oscillator is bullish and above the zero line. The price of PCG is nearly back to its early 2015 high around $60. Aggressive traders could buy some PCG at current levels and add to longs at $59 and $60 with our $68 initial upside target. A close below $54 would make us question the bull case.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
The utility industry appears poorly insulated from the Covid-19 shutdowns and lockdowns, and shares of AEP could weaken more, according to the charts.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
