Since returning to the S&P 500 Index Report back in October, utility Pacific Gas & Electric (PCG) has consistently been in the Green Favored Zone. Over that time, the shares have returned 34.5%. In recent weeks, PCG has been climbing up the rankings and is currently sitting in 37th position, up 21 spots in the last month.
After spending two years bottoming out and base building between $6.00 and $13.00, Pacific Gas & Electric (PGE) came under accumulation starting last July. The shares broke out over $12.50 on volume last September on volume, around the time they returned to the S&P 500 Index, and have continued to advance since then, recently establishing higher support near the $15.00 round number.
Yesterday, PCG closed at its highest level in over three years, indicating its recovery trend continues. Next potential upside resistance appears at a previous peak near $18.00, then $20.00 where a measured move and round number converge, followed by a previous peak near $23.80 and the $25.00 round number.
This 3% chart highlights the collapse of Pacific Gas & Electric (PCG) shares over 2018-2019 as the utility went into bankruptcy, its long stretch of base building from 2020 to 2022, and the beginning of its road to recovery.
Back in October, PCG broke out of a long-term downtrend and completed a bullish Triple Top breakout. Since then, it has remained under steady accumulation, consistently climbing without even a 3-box correction along the way.
Upside resistance tests appear first at the February 2020 high near $18.50, then near $20.00 where a vertical count and a round number converge, then $24.15 near previous column highs. Initial support appears in the $14.60 to $15.00 range where a round number and a 3-box reversal converge.
With a bullish SMAX score of 9, PCG is exhibiting strength against the asset classes.
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