There's always a bull market somewhere, Jim Cramer tells viewers of Mad Money at the conclusion of every show. Tuesday night he highlighted a new bull market: hygiene. After listening to the conference call at Procter & Gamble (PG) and its overseas rival Reckitt Benckiser (RBGPF) , Cramer said one thing is clear, people are obsessed with personal hygiene.
As Procter's management noted, hygiene is the foundation for a healthy lifestyle and once good habits are established, they are rarely reversed.
That's why sales are strong for Proctor's brands like Tide, Bounty, Dawn and Febreze. The same sentiments were shared by Benckiser, makers of Lysol, Vanish and AirWick, among others.
Let's review the charts of PG. We last reviewed the charts on September 2 and wrote that "The charts and indicators of PG suggest that prices could stall or trade sideways for a period of time. The weekly Point and Figure chart, which ignores time (and volume), suggests we can eventually see gains to the $180 area. Stay long and raise sell stops to a close below $128."
In this daily bar chart of PG, below, we can see that prices did not fall below $135 so traders should be still long PG with their stops below $128. PG has rallied into October and is trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line made a slight new high this month but has since turned flat suggesting some profit taking.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but poised for a possible cross to the downside - not the strongest pattern.