PDC Energy, Inc. (NASDAQ:PDCE) gained 2.75% in yesterday’s day, going up from its prior closing price of $45.08 to $46.32, and has now recorded rally in 3 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The stock price went upward in 8 of the last 10 days and has generated 13.11% during the last two weeks. Trading activity decreased by -107 103 shares, and in total, 831 427 shares was the trading volume and the dollar amount of trading equals $38.51 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.
Inside PDCE’s Recent Trend
PDC Energy, Inc. (PDCE) has broken the very wide and falling short-term trend up. Initially a lower tendency for declines in the price is indicated and this might very well be an early sign that a trend shift is more likely to happen in the next couple of days. In case of reaction, the stock will see strong support at $45.99, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $55.97 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.
PDC Energy, Inc. Technical Signals
PDCE has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of an uptrend. Upon corrections, the price will meet support from the averages between $44.33 and $40.82. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Friday September 08, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.
PDC Energy, Inc. (NASDAQ:PDCE) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $43.80 and $40.21. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $47.35, $47.40 and $47.92.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, PDC Energy approaches the first support point just current price at $43.80. In case of a break, the next support we will see from accumulated volume is going to be at $40.21 and $39.70. Accumulated volume is going to prevent the price from rising further at $47.35 and this action will lead the price to take a temporary pause or stay muted for a few days.
PDC Energy, Inc. (PDCE) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $2.04 between high and low, or 4.57%. The average volatility for the past week stood at 3.77%.
The stock is extremely overbought on RSI14 (83). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.