Procter & Gamble -- Ignore the News and Focus on the Price Action

 | Sep 11, 2017 | 12:51 PM EDT
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Procter & Gamble Co (PG) had positive-looking charts and indicators when we lasted reviewed the consumer goods giant in the middle of June, where we said, "PG might trade sideways for a week or so, but renewed gains are anticipated. Traders could buy strength above $89, risking a close below $86. Add to longs on closes above $91 and $92. Target $110 to $115."

Traders who followed this advice should be long from $89, $91 and $92. With all these buys in the black, or profitable, I would suggest raising your sell-stop protection to a close below $91. With the headlines for PG being dominated lately by Nelson Peltz, I would feel more comfortable then that, if there was a reversal, I would not be caught without some protection.

In this daily bar chart of PG, above, we can see the new highs made in August and September, when PG broke above its February and March highs. Prices are above the rising 50-day moving average line and the rising 200-day average line.

The On-Balance-Volume (OBV) line has been rising since May and lends some support to the advance. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late July for an outright go-long signal, and the two averages that make up this indicator have narrowed and could soon yield a fresh go-long signal.

In this weekly bar chart of PG, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has had a positive bias since June of 2016 and it is close to making a new high. The weekly MACD oscillator in the bottom panel is in a bullish configuration.

In this Point and Figure chart of PG, above, we can see the breakout at $90.86 and the potential price objective of $110.01.

Bottom line: I have no idea how PG will fair with Mr. Peltz, but our charts have been and remain bullish. The $110-$115 area remains my upside price target.

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