California utility Pacific Gas & Electric (PCG) returned to the SIA S&P 500 Index from a long absence last week in the Green Favored Zone. Yesterday it jumped 15 positions to 17th place.
A major breakout is underway in Pacific Gas & Electric (PCG) shares. For the last 2½ years, PCG had been trending sideways between $8.00 and $13.00. Back in June, the shares successfully tested support near $10.00 and since then, they have been under renewed accumulation, establishing an uptrend of higher lows, and regaining their 50-day average. A big volume spike on returning to the S&P 500 Index last week signaled renewed investor interest. Yesterday, PCG blasted through $13.00 to signal the start of a new uptrend.
Based on measured moves and previous highs, potential upside resistance may appear near $16.00 or $18.00, then the $20.00 round number. Initial support appears near the $13.00 breakout point, then the 50-day moving average near $12.15.
This 3% chart highlights the significance of the current breakout in Pacific Gas & Electric (PCG) shares. PCG sold off dramatically between 2017 and 2019 then staged an initial bounce and retreat in 2020. For the last two years, PCG has been trending sideways between $8.00 and $12.50. Yesterday, PCG successfully completed its base building process with a bullish Triple Top breakout and the snapping of a long-term 45-degree downtrend line that traced back to the 2017 peak.
With a new recovery trend underway, initial resistance appears near previous column highs and lows in the $17.40 to $18.50 range, then the $20.00 round number, and $20.80 based on a vertical count. Initial support appears near $12.60 based on a 3-box reversal.
With a perfect SMAX score of 10, PCG is exhibiting strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.