PG dominated by bears dragging the market lower throughout the day
Procter & Gamble Company (PG) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PG ended the week -2.35% lower at 121.09 after losing $0.85 (-0.7%) today, significantly underperforming the Dow Indu. (1.21%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PG as at Oct 11, 2019):
Friday's trading range has been $1.24 (1.02%), that's below the last trading month's daily average range of $1.60. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on Tuesday, PG actually gained 0.87% on the following trading day.
Prices are trading close to the key technical support level at 120.45 (S1). After having been unable to move lower than 120.80 in the prior session, the share found buyers again around the same price level today at 120.82.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 120.80 where further sell stops could get triggered. Further selling might move prices lower should the market test September's close-by low at 119.02.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Procter & Gamble. Out of 47 times, PG closed higher 57.45% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.83% with an average market move of 0.61%.