Earnings Play: PPG Industries
Jason Lubin October 16, 2020 4:20 PM
Look for a pull back and then a bounce off of the rising trendline.
On Monday, PPG Industries (PPG) is anticipated to report third quarter EPS of $1.92 compared to $1.67 a year ago on revenue of approximately $3.7 billion vs. $3.8 billion last year. The company produces paints and coatings, and its current analyst consensus rating is 15 buys, 13 holds and 1 sell, according to Bloomberg.
Looking at a daily chart, in logarithmic scale, PPG's stock price has just made a new record high of 138.39 and has been advancing in a strong uptrend since mid-March. The RSI is over 50 and appears to have halted at the threshold of overbought territory. The overall bias remains bullish, but in the short-term PPG's overbought RSI reading and recent short candlesticks could be hinting that price is getting ready to pull back. Price will likely pull back to the trendline, bounce and continue its climb. The next two targets are at 157.00 and 167.00. If price breaks out to the downside of the bullish trendline, it would be a bearish signal that could send price back to the 117.00 support level. Price could possible rebound off of 117.00 a continue its advance. However, if price breaks below 117.00, then price could fall further to 106.00.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.