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PKG — 20-Day Breakout with Volume + Bull Flag / Pennant Breakout

Status: Invalidated

Scanner score: 100.0/100

Why this was flagged

PKG was identified as a bullish technical setup based on the 20-Day Breakout with Volume + Bull Flag / Pennant Breakout pattern. The scanner found a score of 100.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest stored daily low of 233.8400 reached or fell below stop loss 242.2543.

Trade framework

Current price$254.48
Entry zone$254.48 – $256.52
Stop-loss / invalidation$242.25
Target 1$278.93
Target 2$291.16
Reward/risk2.00:1
Suggested holding windowAbout 3–10 trading days, provided price holds above the breakout area.
FoundJul 24, 2026 9:35 pm
Potential expirationAug 6, 2026 6:51 pm
Entry plan: Consider a limit order only within the displayed entry zone. If price does not enter that range, skip the trade rather than chasing it.

Position-sizing example

Reference entry$255.50
Planned risk per share$13.24
Example: $100 planned risk7 shares
Example: $250 planned risk18 shares

These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.

Exit plan

  1. Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
  2. Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
  3. Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
  4. Time exit: Reassess or close a trade that fails to progress within the suggested holding window.

Technical chart

Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.

$195.66$221.30$246.94$272.59$298.23Target 2 $291.16Target 1 $278.93Entry high $256.52Entry low $254.48Stop $242.25Mar 18, 2026Jul 27, 2026
CloseSMA 20EMA 20SMA 50SMA 200Entry zoneStop-lossTargets

$1,000 educational outcome examples

Example reference entry$255.50
Example fractional shares3.91
If Target 1 is reached$1,091.71 value (+9.2%)
If Target 2 is reached$1,139.56 value (+14.0%)
If the stop-loss is reached$948.16 value (-5.2%)

These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.

Easy explanation for new investors

Why the scanner noticed this stock
The scanner gave Packaging Corp Of America a perfect score of 100. It found a special pattern called a "breakout." This means the price moved above its highest point from the last 20 days. Many people were trading the stock, which is shown by high volume. Volume is just a measure of how many shares are being traded. The price is also staying above its moving averages. A moving average is a line that shows the average price over a certain number of days to help see the trend.

What the price plan means
The entry zone is between $254.48 and $256.51. This is the area where the setup was found. There are two target prices: $278.93 and $291.15. These are levels the scanner is watching. The plan uses a reward-to-risk ratio of 2. This means for every dollar put at risk, there is a goal to gain two dollars.

What could make the idea fail
The plan includes a stop-loss price of $242.25. A stop-loss is a price level used to exit a trade if the stock moves in the wrong direction. If the price falls below this number, the setup is no longer valid.

Important reminder
This information is for educational purposes only. It shows how technical patterns work and does not provide financial advice.

Recent news context

This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.

Overall context: Caution (High confidence)

Packaging Corporation of America (PKG) has experienced recent stock price appreciation driven by record corrugated shipments, a tight containerboard market, and anticipated significant price hikes. The company reported strong Q1 results with revenue up 14.7% year-over-year and increased its quarterly dividend. However, while technical setups show momentum, analysts from UBS note that the company may face higher costs in the second half of the year, which could impact profitability. Additionally, while pricing improvements are expected in the third quarter, there remains uncertainty regarding demand and potential cost pressures.

Potentially supportive context

  • Reported strong Q1 results with revenue increasing 14.7% year-over-year and an increased quarterly dividend.
  • Achieved record corrugated shipments amid a tight containerboard market.
  • Anticipated significant containerboard price increases expected to impact future earnings.

Risks and caution items

  • UBS anticipates challenges from higher costs in the latter half of the year affecting profitability.
  • Potential for cost pressures and demand uncertainties.
  • Recent performance includes a slight dip in net income despite rising sales.

Latest reviewed article: Jul 26, 2026 6:24 pm

Recent related articles

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Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.

Scanner confirmations

  • Price is above the 20-, 50-, and 200-day moving averages, with bullish moving-average alignment.
  • Current volume is at least 1.25x the 20-day average volume.
  • RSI is in a constructive momentum range without being overbought.
  • Price closed above the prior 20-day high with above-average volume.
  • Price broke above a tight 5-day consolidation after a meaningful 10-day advance, with volume confirmation.
Important: This is an automated educational screening result, not a buy recommendation. Confirm price, liquidity, earnings dates, news, and your own risk before entering any trade.
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