Market Overview

After Earnings Beat, PPG Is Primed For A Technical Breakout

Share:

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, forex, ETFs and cryptocurrencies. 

The Dow Jones U.S. Basic Materials Index is up 4 percent in 2017, making it an underperformer of the overall market by 2 percent. Today, we're looking at one of the members of that sector that appears primed to breakout: PPG Industries, Inc. (NYSE: PPG).

The VantagePoint Trading Journal On PPG

ppg.png

PPG's trading following its fourth-quarter earnings announcement has set it up for a bullish technical breakout. You can see on the chart above that the big green candle on the right side was immediately followed by a crossover by the blue line over the black line. 

The two lines represent moving averages. The blue line is a predictive indicator that predicts where the moving average will be in two days. The black line is a simple 10-day moving average.

A crossover of the blue line over the black line indicates the start of a bullish trend, and vice versa for a bearish trend. 

In this case, PPG's EPS and revenue beat served as a catalyst. Even though the Neural Index at the bottom of the chart is red, indicating short-term bearishness, the bullish trend is intact as long as the two lines don't cross. 

 

VantagePoint is an editorial partner of Benzinga

Posted-In: vantagepointLong Ideas Technicals Markets Trading Ideas

 

Related Articles (PPG)

View Comments and Join the Discussion!

Energen Vs. Range Resources: A Commodity Pair Trade From Morgan Stanley

3 Micro-Cap Tech Stocks To Watch In 2018