This Breakout Stock is a Buy Right Now

Procter & Gamble Co (NYSE: PG) shows signs of an upcoming price surge according to its latest charts. The Procter & Gamble Company provides branded consumer packaged goods to consumers globally. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.

The stock was also a part of our watchlist.

Bullish Indications

#1 IH&S Breakout: The daily chart shows that the stock has currently broken out of an Inverted Head and Shoulders (IH&S) pattern. This IH&S pattern is marked in the chart in purple color. An IH&S pattern is a strong bullish pattern and the breakout from it indicates that the stock may move higher in the short term.

PG – Daily Chart

#2 Trading Above MAs: The stock is currently trading above its 50-day as well as 200-day moving averages, indicating a bullish bias for the stock.

#3 MACD above Signal Line: The daily chart shows that the MACD (light blue color) is currently above the MACD signal line (orange color). When this happens, a potential buy signal is generated.

#4 Bullish ADX and DI: The ADX indicator shows bullishness as the (+DI) line is greater than the (-DI) line, and the ADX line is rising from below both (+DI) and (-DI). This points to a possible upmove in the near-term.

#5 Bullish Aroon: The value of Aroon Up is above 70 and Aroon Down is below 30 in the daily chart. This indicates possible bullishness.

#6 Ascending Triangle Pattern Breakout: The weekly chart shows that the stock has currently broken out of an Ascending Triangle pattern. An Ascending Triangle pattern is a bullish pattern. This is marked on the chart in pink color lines. A breakout from an ascending triangle pattern would indicate bullishness. The base of the triangle generally acts as a good support level after the breakout.

PG – Weekly Chart

#7 Bullish Stochastic: As you can see from the weekly chart, the %K line (blue color) is currently above the %D line (orange color), indicating a possible bullish bias.

Recommended Trade (based on the charts)

Buy Price: If you want to get in on this trade, the ideal buy level for PG is above yesterday’s high, at around $147.30.

TP: Our first target price is $155 and the second target price is $165 in the next 3-6 months based on the IH&S pattern breakout.

SL: To limit risk, place a stop loss below $142.30. Note that this stop loss is on a closing basis.

Our target potential upside is almost 5% to 12% in the next 3-6 months.

For a risk of $5.00, our target rewards are $7.70 and $17.70. This is a 1:2 and 1:4 risk-reward trade.

In other words, this trade offers nearly 2x to 4x more potential upside than downside.

Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the Inverted Head and Shoulders pattern breakout level. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.

Happy Trading!

— Tara

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