PG dominated by bears dragging the market lower throughout the day
Procter & Gamble Company (PG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PG ended Wednesday at 137.70 losing $0.93 (-0.67%), underperforming the Dow Indu. (0.13%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 138.39, the share confirmed its breakout through the previous session low after trading up to $0.79 below it intraday.
Daily Candlestick Chart (PG as at Sep 16, 2020):
Wednesday's trading range has been $2.57 (1.84%), that's slightly above the last trading month's daily average range of $2.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PG.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. In spite of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 20-day moving average at 138.01 for the first time since September 10th. When this moving average was crossed below the last time on September 10th, PG actually gained 1.05% on the following trading day.
Though Procter & Gamble is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 141.70, upside momentum might accelerate should PG be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Procter & Gamble. Out of 461 times, PG closed higher 52.93% 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 59.22% with an average market move of 0.54%.