PG pushes through key technical resistance level
Procter & Gamble Company (PG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PG ended Thursday at 107.38 gaining $6.46 (6.4%), slightly outperforming the Dow Indu. (6.38%). Closing above Wednesday's high at 104.70, the market confirmed its breakout through the prior session high after trading up to $3.61 above it intraday.
Daily Candlestick Chart (PG as at Mar 26, 2020):
Thursday's trading range has been $5.78 (5.56%), that's below the last trading month's daily average range of $7.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher 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 106.67 (now S1), which is likely to act as support going forward. The last time this happened on March 10th, PG actually lost -7.43% on the following trading day.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Procter & Gamble. Out of 250 times, PG closed higher 53.20% 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 56.80% with an average market move of 0.23%.