Procter & Gamble (PG) got an outperform -- or "Buy" -- rating from an analyst firm this week, Wolfe Research, which reportedly just initiated coverage of the stock.
Let's check out the charts and indicators, for the technical picture.
In this daily bar chart of PG, below, we can see that prices have worked lower the past 12 months in a downward sloping channel.
We can see a current rally to test the declining 200-day moving average line, while prices have yet to break the prior high in August. The 50-day moving average line is bottoming. The trading volume has been steady/neutral the past three months.
I would be more impressed with PG's rise if trading volume increased. The daily On-Balance-Volume (OBV) line shows a modest rise from early October. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line, but showing some narrowing, which tells me that the trend strength is weakening.
In this weekly Japanese candlestick chart of PG, below, we can see that prices have rallied to the declining 40-week moving average line. There is some chart resistance in the $145-$150 area.
The trading volume is neutral while the weekly OBV line has moved higher the past seven weeks. The MACD oscillator has crossed to a cover shorts buy signal. An outright buy signal is a ways off.
In this daily Point and Figure chart of PG, below, we can see a potential price target in the $151 area.
In this weekly Point and Figure chart of PG, below, we can see a price target in the $173 area.
Bottom line strategy: The charts and indicators of PG are mixed. It is a tough call to decide whether the current advance stalls or whether it keeps climbing. I am not in favor of flipping a coin so let's stand aside for now.
Correction: The analyst coverage described in this story has been updated.
