PACKAGING CORPORATION OF AMERICA (NYSE: PKG)

Technical analysis

Price

$ 134.82

52 weeks range

$ 127.06 - $ 156.54

Beta

0.90

Volume/ average

496.6m/ 631.6m

Sector

Consumer cyclical

Dividend

2.97%

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

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