PPG Industries WCA - Rectangle Reversal Pattern
Company: PPG Industries
Ticker: PPG
Exchange: NYSE
Sector: Materials
Introduction:
Hello and thank you for taking the time to read my post. Today, we analyze PPG Industries' chart on the weekly scale, focusing on a classic price pattern called the "Rectangle Pattern." PPG Industries is a global supplier of paints, coatings, and specialty materials, traded on the NYSE under the ticker PPG.
Classic Rectangle Pattern:
The classic rectangle pattern is a chart pattern formed when the price of an asset moves between two parallel horizontal lines, representing support and resistance levels, over a period of time. It reflects a consolidation phase where the market is undecided about the direction of the trend and can serve as a reversal or continuation pattern depending on the context.
Analysis:
PPG Industries offers an excellent example of a rectangle pattern serving as a reversal pattern. The overall trend has been bearish since 07/06/2021, with the rectangle emerging as a consolidation pattern during this period. This 399-day-old pattern demonstrates clear touchpoints on both the lower and upper boundaries, which are situated at 107 and 138, respectively. Recently, the price broke out of the rectangle and is now retesting the multi-month resistance-turned-support, suggesting a potential trend reversal. All of that happens above the 200 EMA.
Price Targets and Resistance Levels:
The price target for this pattern is set at 168.55, which translates to a 22.13% increase from the current level. On the way to the target, we may encounter resistance at a supply zone near 168, which should be monitored closely.
Conclusion:
The PPG Industries weekly chart showcases a textbook example of the rectangle reversal pattern, indicating a potential trend change from bearish to bullish. As the price has broken out of the rectangle and is currently retesting the former resistance as support, traders should keep a close eye on the development of this pattern. Remember to consider risk management and proper position sizing when trading based on chart patterns.
Please note that this analysis is not financial advice. Always do your own due diligence when investing or trading.
If you found this analysis helpful, please like, share, and follow for more updates. Happy trading!
Best regards,
Karim Subhieh
Ticker: PPG
Exchange: NYSE
Sector: Materials
Introduction:
Hello and thank you for taking the time to read my post. Today, we analyze PPG Industries' chart on the weekly scale, focusing on a classic price pattern called the "Rectangle Pattern." PPG Industries is a global supplier of paints, coatings, and specialty materials, traded on the NYSE under the ticker PPG.
Classic Rectangle Pattern:
The classic rectangle pattern is a chart pattern formed when the price of an asset moves between two parallel horizontal lines, representing support and resistance levels, over a period of time. It reflects a consolidation phase where the market is undecided about the direction of the trend and can serve as a reversal or continuation pattern depending on the context.
Analysis:
PPG Industries offers an excellent example of a rectangle pattern serving as a reversal pattern. The overall trend has been bearish since 07/06/2021, with the rectangle emerging as a consolidation pattern during this period. This 399-day-old pattern demonstrates clear touchpoints on both the lower and upper boundaries, which are situated at 107 and 138, respectively. Recently, the price broke out of the rectangle and is now retesting the multi-month resistance-turned-support, suggesting a potential trend reversal. All of that happens above the 200 EMA.
Price Targets and Resistance Levels:
The price target for this pattern is set at 168.55, which translates to a 22.13% increase from the current level. On the way to the target, we may encounter resistance at a supply zone near 168, which should be monitored closely.
Conclusion:
The PPG Industries weekly chart showcases a textbook example of the rectangle reversal pattern, indicating a potential trend change from bearish to bullish. As the price has broken out of the rectangle and is currently retesting the former resistance as support, traders should keep a close eye on the development of this pattern. Remember to consider risk management and proper position sizing when trading based on chart patterns.
Please note that this analysis is not financial advice. Always do your own due diligence when investing or trading.
If you found this analysis helpful, please like, share, and follow for more updates. Happy trading!
Best regards,
Karim Subhieh
KSC
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