In our October 18 review of the charts of Procter & Gamble (PG) we liked the set-up ahead of earnings. We wrote that "Aggressive traders could probe the long side of PG ahead of earnings tomorrow but they need to risk to $136. More cautious traders could go long PG on strength above $148. Our target is the $155 to $162 area for now."
Let's check the indicators again.
In this updated daily bar chart of PG, below, we can see that prices have reached our "$155 to $162 price target." The chart is still strong with prices trading above the rising 50-day moving average line and above the bullish 200-day simple moving average.
The On-Balance-Volume (OBV) line has risen strongly since early June to confirm and support the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line and tells us that the trend is strong.
In this weekly Japanese candlestick chart of PG, below, we see a bullish picture with no upper shadows and no top reversal patterns. Prices are trading above the rising 40-week moving average line. The weekly OBV line is at a new high to support the price advance. The MACD oscillator is bullish.
In this daily Point and Figure chart of PG, below, we can see a new price target of $179.
In this weekly Point and Figure chart of PG, below, we used close only price data. Here the price target becomes the $243 area.
Bottom line strategy: Continue to hold longs in PG from prior recommendations. Raise stops to $156. The $179 area is our next price target with the round number of $200 after that.
