Procter & Gamble (PG) has broken out to a new high for the move up today. I reviewed the stock back in June and wrote that, "There is some chart resistance in the $78-$80 area. Strength above $80 could keep the bulls going. Continue to hold longs and raise stops to your entry point."
With PG trading above that resistance area the past six to seven weeks, a fresh look at the charts is in order. Let's check.
In this daily bar chart of PG, below we can see a bullish golden cross of the rising 50-day moving average line and the declining 200-day average line.
The daily On-Balance-Volume (OBV) line has been positive since early June and signals that buyers of PG have been more aggressive with heavier volume being transacted on days when the stock has closed higher.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned up to a fresh outright go long signal.
In this weekly bar chart of PG, below, we can see that prices are above the still declining 40-week moving average line.
The weekly OBV line is neutral the past two months, while the MACD oscillator turned bullish.
In this Point and Figure chart of PG, below, we can see a double top breakout and a potential price target of $111.
Bottom line strategy: PG has moved up nicely since June so longs could raise stops to below $80 now. Traders could add to longs here and on further strength. The $100 level and the $110 area are our price targets now.