The technical picture of the Pacific Gas & Electric Company stock (NYSE: PCG) on our 4-hour chart shows that on Monday, the share price accelerated, breaking above the highest point of August, at 9.60. PCG then retraced back down somewhat but found strong support near that 9.60 hurdle. At the same time, the stock is trading above a short-term upside support line taken from the low of August 6th. For now, we will continue aiming higher, at least in the near term, especially if the price pushes through the current highest point of this week, at 9.93.
If that break happens and the price rises above the 9.93 barrier, this will confirm a forthcoming higher high, possibly opening the door for a move to the 10.08 obstacle, or even to the 10.29 zone, marked by the high of July 13th. Initially, PCG could receive a hold-up around there, but if the buying interest remains strong, the stock may overcome the 10.29 hurdle, where the next target might be the 10.52 level. That level marks the highest point of July.
At the time of writing, the RSI is flat, but continues to stay above 50. The MACD is pointing slightly to the upside, while running above zero and the trigger line. Both oscillators show positive price momentum, which supports the above discussed scenario.
Alternatively, if the share price drifts heavily to the downside, breaks and stays below the aforementioned upside line, this might scare off some existing and new buyers from the field temporarily, as such a move could increase the stock’s chances of drifting further south. PCG might travel to the 9.24 obstacle, or to the 9.08 zone, marked by the current lowest point of September. If new buyers are still not interested in buying the stock at that price, the slide may continue. PCG could make its way to the 8.98 area, or even to the 8.76 level, marked by the lows of August 31st and 19th respectively.
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