PG stuck within tight trading range
Procter & Gamble Company (PG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PG ended the week -1.75% lower at 112.60 after gaining $0.98 (0.88%) today on low volume, outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PG as at May 22, 2020):
Friday's trading range has been $1.84 (1.64%), that's below the last trading month's daily average range of $2.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PG. Prices continued to consolidate within a tight trading range between 111.43 and 113.77 where it has been caught now for the last three trading days.
After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 111.76 earlier during the day, Procter & Gamble bounced off the key technical support level at 111.86 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 111.43 in the prior session, the stock found buyers again around the same price level today at 111.76. The last time this happened on Wednesday, PG actually lost -1.47% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 111.43 where further sell stops could get activated. Further selling might move prices lower should the market test April's nearby low at 107.00.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Procter & Gamble. Out of 33 times, PG closed higher 57.58% 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 60.61% with an average market move of 0.61%.