Trouble in PCG Continues. Short PCG here at resistance
PG&E is under massive headline pressure these days after being blamed for the recent California wildfires. The stock went down 60% recently and has rallied 50% off of its low of $17.26.
On Friday after the close, new headlines came out suggesting that PCG falsified gas pipeline safety records for years. Bankruptcy is definitely in the cards. When stocks become super weak and then bounce, they frequently 'bump their heads' into their 13-day EMAs. That's exactly where PCG sits right now.
There is a potential for a gap down on Monday given the news so be careful with this one, but the first line of support for PCG is not until $22.70, but it obviously can and likely will go lower.
Short PCG between $25-26.
Target 1: $22.70
Target 2: $18
Stop: $27.40
On Friday after the close, new headlines came out suggesting that PCG falsified gas pipeline safety records for years. Bankruptcy is definitely in the cards. When stocks become super weak and then bounce, they frequently 'bump their heads' into their 13-day EMAs. That's exactly where PCG sits right now.
There is a potential for a gap down on Monday given the news so be careful with this one, but the first line of support for PCG is not until $22.70, but it obviously can and likely will go lower.
Short PCG between $25-26.
Target 1: $22.70
Target 2: $18
Stop: $27.40
Trade active:
I was able to sell a small amount of shares short @ 24.80.
Trade closed: target reached:
Target reached.
Comment:
Target 2 hit