52 weeks range
$ 127.06 - $ 156.54
Packaging Corp. of America is the fourth largest cardboard manufacturer for corrugated containers and packaging in the United States. It produces around 4 million tons of carton per container per year. The company's share in the domestic cartonboard market is around 10%.
PKG has formed a parallel channel since the beginning of January 2021 which we believe is close to repeating price action seen in the past. In the last month, the stock has consolidated at $ 132 -136.00 and it is now due to strong moves.
Since the end of September 2021, PKG has respected the bearish trendline and we believe the stock is close to a break to the upside
MACD, despite a consolidating price, is up sharply from the lows reached in October
RSI is in positive divergence with the price from 21/09/2021
The cyclicality with which the stock has moved throughout 2021 is in favor of bullish movements. We exclude a bearish “head & shoulder” formation for the moment given also the positive divergence between MACD-RSI and price.
As a precaution, we will wait for the upward break of the trendline
Entry range $ 138.00 - $ 139.00
Target 1 $ 145.00
Target 2 $ 155.00
Stop loss 1 $ 126.50
OTB Global Investments
16 November 2021