PG&E Corporation (NYSE:PCG) shares are consolidating on Wednesday. They suffered a large selloff early this week on concerns over California wildfires. But they may have found a bottom. They could even rally. This is why we have made PC&G the Stock of the Day.

Many old trading adages are based on important market dynamics. ‘Markets have memories’ is one of them. It refers to how an important price level can retain its importance for a long time. It can be months or even years.

PG&E Chart

The $13 level has been important for almost 6 years.

It first became resistance in December 2020. Then it was resistance in January and April 2022.

In July 2025, it became support. Now it appears to be support once again.

Price levels that had previously been resistance can become resistance again. It is a common occurrence in the markets.

It is the result of remorseful or regretful buyers.

These are people who bought shares at the resistance level who came to regret doing so when the price dropped. Some decide to hold onto their losing positions, but they also decide to sell them at breakeven if they could eventually do so.

As a result, when the shares rally back to the resistance level, they place sell orders. If there is a large enough quantity of these orders, it will form resistance again.

Levels that had been support can become support again for the opposite reason. It is due to seller’s remorse.

There are people who sold at the support who regretted doing so when the shares rallied. Some of them decided to buy their shares back if they could eventually get them at their sale price.

So, when the shares drop back to the support level, they place buy orders. These orders can create support at the level again.

Savvy traders can identify important price levels. This helps them profit.

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