Packaging Corporation of America (PKG stock) price surpassed the resistance mark of $150 and shows the past sessions witnessed strong buying pressure. This upward move arose after the Q2 earnings results, which were above the estimates and led to an enormous surge in price.
PKG stock has published mixed numbers. Net income slipped by 32.82% to 200.80 Million (YoY) and the total revenues by 12.72% to 1.95 Billion. However, EPS went up by 19.83%, which is a positive sign.
Moreover, follow-on buying was noted beyond the breakout, showing that sellers are covering their positions and leading the stock rally. Furthermore, the uptrend will likely be extended toward the trajectory of $165, followed by $180 for the upcoming sessions.
The price action indicates bullishness, and buyers are gaining traction showing aggressive buying moves. However, sellers are willing to retest the gap near $140 soon.
At press time, PKG stock was trading at $152.82 with an intraday gain of 0.26%, showing neutral moves in yesterday’s session. Moreover, the trading volume remained average at 560K. The market cap of PKG stock is 13.743 Billion.
Packaging Corporation of America is engaged in the production of container products. It operates through the following segments: packaging, paper, corporate and others. The packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers.
The paper segment manufactures and sells a range of papers, including communication-based papers, and pressure-sensitive papers. It also focuses on transportation assets like rail cars and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.
PKG Stock Shows Bullishness On Daily Chart
On the daily chart, PKG stock shows a range breakout above $150 where it stayed, spreading the gains. Furthermore, the chart shows a bullish marubozu candlestick, indicating buyers’ strength and a further rise in the upcoming sessions.
As per the technicals, PKG stock is trading in the overbought zone, and shifting in momentum was witnessed. Buyers are straining to stretch the gains further beyond the limits. The price is trading on the verge of the upper bollinger band and looking for further breakout.
What Technical Indicators Suggest About PKG stock
On the 4-hour charts, PKG stock trades beyond the significant moving averages and feeds the gains on the top, indicating buyers’ projections.
The RSI curve noted a slight decline from the top and remained in the overbought zone stating a positive crossover which implies bullishness on the charts.
Moreover, the recent gap-up activity suggests that fresh buying was triggered, signalling bullish cues for the following sessions.
The MACD indicator exhibited a bullish crossover and green bars reflecting bullishness on the charts.
Conclusion
Packaging Corporation of America (PKG stock) piloted a giant breakout post a gap-up opening, and follow-on buying raised the bullish move toward further delights.
Technical Levels:
Support Levels: $140
Resistance Levels:$160
Disclaimer
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Source: https://www.thecoinrepublic.com/2023/07/29/will-pkg-stock-nyse-pkg-sustain-the-gains-above-150/