The Procter & Gamble Company (PG/NYSE): general review
10 December 2018, 12:10
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 91.50 |
| Take Profit | 89.00, 87.00, 86.00 |
| Stop Loss | 92.35, 94.00 |
| Key Levels | 87.50, 90.00, 91.50, 94.50 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 94.55 |
| Take Profit | 98.00, 100.00 |
| Stop Loss | 92.00 |
| Key Levels | 87.50, 90.00, 91.50, 94.50 |
Current trend
Shares of Procter & Gamble traded at a discount of 2.3% to a 52-week high. The growth of the issuer's quotations since the October’s 3-month lows was 19.7%. Last week, Procter & Gamble announced the closure of a deal to buy the consumer health business of German Merck KGaA for $1 billion. In the future, the company plans to buy a 51.8% stake in Merck Ltd., an Indian subsidiary.
Last week, The Procter & Gamble shares fell by 0.40%. For the same period, the S&P500 fell by 4.04%.
Support and resistance
The issuer is in sideways movement. The current technical picture rflects the “Double Top”, classic reversal pattern. The key range is 91.50–94.50. Indicators do not give accurate signals: the price is testing 50 MA; MACD began to decline. Positions should be opened from the key levels.
Comparative analysis of the multipliers of the company and competing companies in the industry indicates the undervaluation of #PG.
Support levels: 91.50, 90.00, 87.50.
Resistance levels: 94.50.
Trading tips
If the price consolidates below the support level of 91.50, correction of quotations #PG is expected. Potential profit levels would be 89.00, 87.00 and 86.00. Stop loss is 94.00.
If the price consolidates above the resistance level of 94.50, it is necessary to consider buying the company's shares. Profit levels would be in the range of 98.00–100.00. Stop loss – 92.00.
Trading scenarios will be relevant for 3 days.
Shares of Procter & Gamble traded at a discount of 2.3% to a 52-week high. The growth of the issuer's quotations since the October’s 3-month lows was 19.7%. Last week, Procter & Gamble announced the closure of a deal to buy the consumer health business of German Merck KGaA for $1 billion. In the future, the company plans to buy a 51.8% stake in Merck Ltd., an Indian subsidiary.
Last week, The Procter & Gamble shares fell by 0.40%. For the same period, the S&P500 fell by 4.04%.
Support and resistance
The issuer is in sideways movement. The current technical picture rflects the “Double Top”, classic reversal pattern. The key range is 91.50–94.50. Indicators do not give accurate signals: the price is testing 50 MA; MACD began to decline. Positions should be opened from the key levels.
Comparative analysis of the multipliers of the company and competing companies in the industry indicates the undervaluation of #PG.
Support levels: 91.50, 90.00, 87.50.
Resistance levels: 94.50.
Trading tips
If the price consolidates below the support level of 91.50, correction of quotations #PG is expected. Potential profit levels would be 89.00, 87.00 and 86.00. Stop loss is 94.00.
If the price consolidates above the resistance level of 94.50, it is necessary to consider buying the company's shares. Profit levels would be in the range of 98.00–100.00. Stop loss – 92.00.
Trading scenarios will be relevant for 3 days.
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