The Procter & Gamble Co. (PG/NYSE): general review
14 May 2018, 10:56
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 74.10 |
| Take Profit | 75.50, 77.00, 78.00 |
| Stop Loss | 72.50 |
| Key Levels | 71.00, 73.00, 74.00, 76.00, 77.50 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 70.90 |
| Take Profit | 68.00, 67.00 |
| Stop Loss | 72.50 |
| Key Levels | 71.00, 73.00, 74.00, 76.00, 77.50 |
Current trend
The Procter & Gamble got a new rival for Gillette, represented by Costco Wholesale Corp., which began selling blades and razors under its brand in Kirkland Signature stores at a price 24% lower than Gillette Mach 3. This news is negative for The Procter & Gamble, as the company has already lowered prices for products at the end of last year. Moreover, later this month, a new competitor, Harry's, enters the market, which will sell its products at 2200 Walmart stores.
In the previous week, the stock of The Procter & Gamble grew by 1.30%. S&P 500 index went up by 0.31% during the same period.
Support and resistance
The current technical picture indicates a possible correction of the company's shares. There is a classic reversal formation in the issuer — divergence of price and MACD indicator, for quite a long time. Currently the quotes of #PG are testing the "mirror" support level of 73.00. The local resistance level is 74.00. MACD histogram is in the positive zone and continues to rise, which signals the strength of the buyers. In the near future it is advisable to consider purchase of #PG.
Comparing company's multiplier with its competitors, we can say that #PG shares are undervalued.
Support levels: 73.00, 71.00.
Resistance levels: 74.00, 76.00, 77.50.
Trading tips
If the price consolidates above the resistance level of 74.00, one should expect the company's shares to correct. Potential profits should be locked in by orders at 75.50, 77.00 and 78.00. Stop-loss will be placed at the level of 72.50.
If the price consolidates below 71.00, sales of #PG should be considered. The moving potential is aimed at 68.00–67.00. Stop-loss should be placed at 72.50.
Implementation period: 3 days.
The Procter & Gamble got a new rival for Gillette, represented by Costco Wholesale Corp., which began selling blades and razors under its brand in Kirkland Signature stores at a price 24% lower than Gillette Mach 3. This news is negative for The Procter & Gamble, as the company has already lowered prices for products at the end of last year. Moreover, later this month, a new competitor, Harry's, enters the market, which will sell its products at 2200 Walmart stores.
In the previous week, the stock of The Procter & Gamble grew by 1.30%. S&P 500 index went up by 0.31% during the same period.
Support and resistance
The current technical picture indicates a possible correction of the company's shares. There is a classic reversal formation in the issuer — divergence of price and MACD indicator, for quite a long time. Currently the quotes of #PG are testing the "mirror" support level of 73.00. The local resistance level is 74.00. MACD histogram is in the positive zone and continues to rise, which signals the strength of the buyers. In the near future it is advisable to consider purchase of #PG.
Comparing company's multiplier with its competitors, we can say that #PG shares are undervalued.
Support levels: 73.00, 71.00.
Resistance levels: 74.00, 76.00, 77.50.
Trading tips
If the price consolidates above the resistance level of 74.00, one should expect the company's shares to correct. Potential profits should be locked in by orders at 75.50, 77.00 and 78.00. Stop-loss will be placed at the level of 72.50.
If the price consolidates below 71.00, sales of #PG should be considered. The moving potential is aimed at 68.00–67.00. Stop-loss should be placed at 72.50.
Implementation period: 3 days.
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