PG pops to highest close since October 30th
Procter & Gamble Company (PG) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PG finished Wednesday at 124.53 surging $1.58 (1.29%), outperforming the Dow Indu. (0.53%). Today's close at 124.53 marks the highest recorded closing price since October 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 122.96, Procter & Gamble confirmed its breakout through the previous session high after trading up to $1.62 above it intraday.
Daily Candlestick Chart (PG as at Dec 04, 2019):
Wednesday's trading range has been $1.89 (1.54%), that's above the last trading month's daily average range of $1.45. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PG.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 122.95 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 125.00 (R1).
Crossing above the upper Bollinger Band for the first time since September 4th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 121.15 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on September 4th, PG actually lost -0.37% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 125.77, upside momentum could speed up should the stock be able to break out to new highs for the year. Further buying might move prices higher should the market test November's nearby high at 125.14.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Procter & Gamble. Out of 84 times, PG closed lower 52.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.52% with an average market move of -0.53%.