PCG Surges 3.31% on Bullish Technical Signals as Key Resistance Levels Emerge

Pacific Gas and Electric (PCG) Technical Analysis

Pacific Gas and Electric (PCG) has surged 3.31% in the most recent session, extending its two-day rally by 3.86%. This upward momentum suggests a potential short-term bullish bias, though technical indicators highlight key levels and divergences that warrant closer scrutiny.

Candlestick Theory

Recent price action reveals a bullish engulfing pattern on August 19, where the candle closed near its high ($15.62), surpassing the prior session’s high of $15.18. This suggests strong buying pressure. Key support levels are identified at $14.98 (August 18 low) and $14.02 (July 31 low), while resistance is clustered around $15.62 (August 19 high) and $16.06 (June 3 high). A breakdown below $14.98 could trigger a retest of the $14.02 level, while a breakout above $15.62 may target the $16.06 psychological barrier.

Moving Average Theory

The 50-day moving average (currently ~$15.30) is above the 200-day MA (~$15.10), indicating a bullish intermediate trend. However, the 100-day MA (~$15.25) is converging with the 50-day MA, suggesting potential consolidation. If the price sustains above the 50-day MA, it could signal continued strength; a close below $15.20 may invalidate the bullish bias.

MACD & KDJ Indicators

The MACD histogram has turned positive in recent sessions, with the signal line crossing above the MACD line—a golden cross—indicating momentum shifting to the bulls. The KDJ oscillator shows %K (30-period) crossing above %D, aligning with overbought conditions (RSI at 68). However, a divergence between the KDJ’s peak and the price high on August 19 may hint at near-term exhaustion.

Bollinger Bands

Volatility has expanded, with the price touching the upper band on August 19. This suggests a potential overbought condition, though the bands remain relatively narrow compared to the January–February 2025 contraction phase. A sustained move above the upper band could extend the rally, but a pullback to the middle band (~$15.30) is likely if the $15.62 level fails.

Volume-Price Relationship

Trading volume spiked to $520.85 million on August 19, the highest in over a month, validating the recent price surge. However, volume has been declining since the June 2025 peak, which may indicate weakening conviction in the rally. A follow-through increase in volume on a breakout above $15.62 would strengthen the case for further gains.

Relative Strength Index (RSI)

The 14-period RSI is at 68, approaching overbought territory (70 threshold). While this suggests a potential pullback, historical data shows the RSI has frequently retraced from 70 without a bearish reversal. A close above 70 would signal continuation, but a drop below 50 would indicate a shift in momentum.

Fibonacci Retracement

Applying Fibonacci levels between the January 2025 high ($20.85) and April 2025 low ($14.12) reveals key retracement levels: 38.2% at $16.40, 50% at $17.48, and 61.8% at $18.49. The current price of ~$15.60 aligns with the 23.6% retracement level, suggesting potential support if the rally stalls.

Backtest Hypothesis

The backtest of a MACD golden cross strategy (buy on signal line crossover, hold 14 days) showed an average gain of 1.52% with a 60% win rate over the test period. The highest return (9.05%) occurred on November 29, 2022, while a notable drawdown of 17.58% followed on December 22, 2022. This suggests the strategy may perform best in trending markets but requires caution during volatile phases. Integrating this with the current setup, a golden cross on August 19 aligns with bullish momentum, though the RSI and Bollinger Bands warn of overbought conditions. A stop-loss below $14.98 or a time-locked exit after 14 days could mitigate risks.