PG pops to highest close since April 21st
Procter & Gamble Company (PG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PG ended the month 3.15% higher at 119.57 after gaining $1.91 (1.62%) today, outperforming the Dow Indu. (0.85%). Today's close at 119.57 marks the highest recorded closing price since April 21st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 118.05, the share confirmed its breakout through the prior session high after trading up to $1.94 above it intraday.
Daily Candlestick Chart (PG as at Jun 30, 2020):
Tuesday's trading range has been $2.19 (1.86%), that's slightly below the last trading month's daily average range of $2.32. 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 118.66 (now S1), which is likely to act as support going forward. After spiking up to 119.99 during the day, the market found resistance at the 200-day moving average at 119.84. The last time this happened on April 7th, PG actually gained 2.07% on the following trading day.
Though Procter & Gamble is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to June's high at 121.82, upside momentum could accelerate should the stock mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Procter & Gamble. Out of 19 times, PG closed higher 57.89% 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 57.89% with an average market move of 0.61%.