PG&E Stock Jumps 3.91% as Technicals Signal Bullish Reversal

Pacific Gas and Electric (PG&E) shares closed at $14.08 on June 18, 2025, marking a significant 3.91% gain. This price action forms the foundation for the following technical assessment.
Candlestick Theory
Recent sessions show a potential bullish reversal pattern forming near the $13.50 zone. The sharp decline on June 9th created a long bearish candle, establishing resistance near $14.50-$15.00. The subsequent consolidation near $13.50-$14.00 culminated in the June 18th bullish candle closing near its high, suggesting strong demand and establishing $13.50 as key near-term support. This increases the probability of a test of the $14.50 resistance.
Moving Average Theory
The 50-day moving average (approx. $14.40 based on recent closes) aligns with the June 18th high and acts as immediate resistance. The 200-day moving average (approx. $16.60-$16.80 based on the dataset) remains well above, highlighting the primary downtrend from earlier highs around $20-$21. The convergence of the faster-moving averages (50-day and 100-day) below the 200-day reflects a negative longer-term bias, though the recent close above the short-term moving average cluster near $13.80 suggests possible near-term stabilization or recovery potential.
MACD & KDJ Indicators
The MACD is likely converging towards a potential bullish crossover, recovering from deeply oversold territory established during the mid-June plunge. Histogram values appear to be improving from negative territory. The KDJ shows the %K line crossing above the %D line while emerging from oversold levels (below 30) seen around June 13th-16th. These concur on building positive momentum over the short term, suggesting the pullback may be exhausting.
Bollinger Bands
A period of band contraction (lower volatility) preceded the mid-June breakdown below the lower band. The subsequent price action has seen volatility expand and price recover back towards the mid-line (20-period SMA, approximately $14.25-$14.40). The close near the upper band edge ($14.15 on June 18th) suggests some near-term overextension, but a sustained hold above the mid-line would signal strengthening bullish momentum and reduced downward pressure.
Volume-Price Relationship
The June 18th advance was accompanied by significantly elevated volume (43.7M shares), providing strong validation for the breakout above the $13.60-$13.80 congestion zone. This surge outweighs the volume seen during preceding down days, indicating robust buying interest. Sustained or increasing volume on further advances would bolster the case for continuation, while a pullback on low volume would be constructive.
Relative Strength Index (RSI)
Based on the price sequence, the 14-day RSI has rebounded from oversold territory (<30) around June 13th, reaching approximately 55-60 by the close on June 18th. This move out of oversold territory aligns with the price recovery and reflects improved momentum. The RSI is not yet overbought (>70), leaving room for potential further upside before signaling excessive near-term optimism.
Fibonacci Retracement
Applying Fibonacci retracement to the decline from the May 30th peak near $17.07 to the June 13th swing low near $13.515 reveals key levels. The 38.2% retracement level lies near $14.81, the 50% level near $15.29, and the critical 61.8% resistance near $15.77. The recent rally encountered resistance near the 23.6% level ($14.50) on June 18th. Overcoming $14.50 opens the path towards the 38.2% level at $14.81. These levels represent natural profit-taking zones. Key Confluence: The $14.50 area represents a confluence of resistance, combining the 23.6% Fibonacci level, the psychological price point, the recent high tested on June 18th, and proximity to the 50-day moving average (~$14.40). A decisive break above $14.50 with volume is needed to signal a stronger recovery. No significant bearish divergences are evident in the most recent price action compared to momentum indicators.