PPG Industries (PPG) is a global manufacturer of paints, coatings, and specialty materials.
The company is set to release their latest quarterly figures after the close of trading Thursday, so let's check on the charts and indicators to see how traders and investors may be positioned.
In the daily bar chart of PPG, below, I can see that the shares have been mostly trading sideways the past 12 months. Prices recently made a lower high versus December. PPG is testing the rising 50-day moving average line but remains above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has made a slightly lower high from December to January suggesting that sellers of PPG are moving to a more aggressive stance on the stock. The Moving Average Convergence Divergence (MACD) oscillator is weak and only slightly above the zero line and maybe a day or two from an outright sell signal.
In the weekly Japanese candlestick chart of PPG, below, I fail to see a strong picture. The shares are trading above the bottoming 40-week moving average line but the trading volume has been declining and not increasing. Investors are not being attracted to this stock and that is not a positive development.
The weekly OBV line shows only a slight improvement from an October low. The MACD oscillator is trying to stay above the zero line but it is looking "shaky."
In the daily Point and Figure chart of PPG, below, I can see a potential upside price target in the $151 area. A trade at $138 is needed to refresh the uptrend. A trade at $122.47 could weaken the picture.
In this weekly Point and Figure chart of PPG, below, I can see that the software is projecting the $110 area as a potential downside price target.
Bottom-line strategy: I have no special knowledge of what PPG is going to report to shareholders Thursday evening but the charts and indicators look like another dip to the downside is the more likely path of prices in the weeks ahead.
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