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.
Bullish Indications
#1 Flag Pattern Breakout: The daily chart shows that the stock has currently broken out of a flag pattern, which is marked in the chart in purple color. A flag 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 Bullish RSI: The RSI is above 50 and moving higher, indicating bullishness.
#4 Bullish ADX and DI: The ADX indicator shows bullishness as the (+DI) line and the ADX line are 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 Stoch: The %K line (blue color) is currently above the %D line (orange color), indicating a possible bullish bias.
#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 MACD above Signal Line: The weekly 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.
#8 Bullish Aroon: The value of Aroon Up is above 70 and Aroon Down is below 30 in the weekly chart. This indicates possible bullishness.
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 close, at around $163.00.
TP: Our first target price is $170 and the second target price is $175 in the next 3-6 months based on the ascending triangle pattern breakout.
SL: To limit risk, place a stop loss below $159.00. Note that this stop loss is on a closing basis.
Our target potential upside is almost 4% to 7% in the next 3-6 months.
For a risk of $4.00, our target rewards are $7.00 and $12.00. This is a 1:2 and 1:3 risk-reward trade.
In other words, this trade offers nearly 2x to 3x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the flag 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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