Procter & Gamble Co. (PG) reported fiscal third-quarter results here on Friday morning that beat top- and bottom-line estimates, though the consumer products giant warned about cost headwinds even as it raised its sales forecast for the fiscal year. Let's check out Procter and Gamble's charts and indicators to see what comes out in the wash.
In this daily bar chart of PG, below, I can see that prices are poised to emerge from a large base pattern. Prices have outlined a bottom pattern from May. A "left shoulder" in June, a "head" in October and a "right shoulder" in February and March. PG looks poised for an upside breakout over the "neckline" (not drawn) that looks like it intersects around $154. The trading volume has turned slightly more active after the right shoulder. The On-Balance-Volume (OBV) line shows me strength from the low in October. Traders are more aggressive buyers of PG. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but crossed to a take profit sell signal ahead of earnings. Renewed price strength should turn the oscillator positive again.
In this weekly Japanese candlestick chart of PG, below, I see a positive-looking picture. Prices trade above the rising 40-week moving average line. Strength above $155 should refresh the uptrend. The recent candles show small real bodies, which means that buyers and sellers of PG are in a relative balance. Fresh strength and a white real body this week will refresh the uptrend. The OBV line shows strength from October. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of PG, below, I can see a potential upside price target in the $183 area. A trade at $153.96 should refresh the uptrend.
In this weekly Point and Figure chart of PG, below, I can see a price target in the $217 area.
Bottom line strategy: Traders could go long PG or add to longs on strength above $153.96. Risk to $148. The $183 area is my first price target.
