The Procter&Gamble Co. (PG/NYSE): general analysis

Current trend

Procter&Gamble shares are trading at a 2.6% discount to the 52-week high of July 30, which was previously updated amid the publication of a strong quarterly report with results above market expectations. Revenue increased by 4% YoY to $17.1 billion, with organic sales growth of 7%. The net loss amounted to $5.24 billion due to a one-time non-cash write-off of $8 billion for the business of the Gillette shaving segment.

Over the past week, The Procter&Gamble shares rose 2.60%. Over the same period, the S&P 500 rose 1.55%.

Support and resistance

The company's shares stabilized after a protracted rally. #PG quotes are currently consolidating. The local support and resistance levels are 113.00 and 118.00. In the near future, a technical correction of the issuer is not excluded. Indicators do not give accurate signals: the price is testing MA (50); the MACD histogram is near the zero line. It is better to open positions from the key levels.

A comparative analysis of the multiples of the company and competing companies in the industry indicates the neutrality of #PG.

Resistance levels: 118.00, 121.50.

Support levels: 113.00, 109.00, 106.50.

Trading tips

Long positions can be opened after the price consolidates above the level of 118.00. The closing of the profitable positions is possible at the levels of 122.00, 126.00, and 129.00. Stop loss is 114.00.

Short positions can be opened after the price consolidates below the level of 113.00 with the targets at 106.00–103.00. Stop loss is 117.00.

Implementation period: 3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    118.00

  • Take Profit

    122.00, 126.00, 129.00

  • Stop Loss

    116.65, 114.00

  • Key Levels

    106.50, 109.00, 113.00, 118.00, 121.50

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    112.90

  • Take Profit

    106.00, 103.00

  • Stop Loss

    117.00

  • Key Levels

    106.50, 109.00, 113.00, 118.00, 121.50