Packaging Corporation of America
Packaging Corporation of America (PKG - Get Report) engages in the manufacture and sale of containerboard and corrugated packaging products for industrial and consumer markets in the U.S. This stock closed up 1.3% at $63.84 in Wednesday's trading session.
Wednesday's Volume: 1.17 million
Three-Month Average Volume: 761,123
Volume % Change: 75%
From a technical perspective, PKG spiked modestly higher here right off its 50-day moving average of $62.41 with above-average volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $51 to its recent high of $66.50. During that uptrend, shares of PKG have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PKG within range of triggering a near-term breakout trade. That trade will hit if PKG manages to take out Wednesday's high of $64.91 to its 52-week high at $66.50 with high volume.
Traders should now look for long-biased trades in PKG as long as it's trending above its 50-day at $62.41 or above more near-term support at $61.64 and then once it sustains a move or close above those breakout levels with volume that's near or above 761,123 shares. If that breakout hits soon, then PKG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75.
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-- Written by Roberto Pedone in Delafield, Wis.