The Procter & Gamble Company (PG)

PG stock forecast: buy or sell

PG stock outlook

  • Procter & Gamble closed today at $136.31 after slicing a -1.2%.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $93.13. This uptrend marked a 46.37% gain
  • The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa.
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Disclaimer:
The opinions published in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have any knowledge of the individual conditions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for educative purposes only

PG stock charts overview

Should I buy Procter & Gamble stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is PG stock a buy?

Currently, Procter & Gamble stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that shares price doesn't have upper resistances, and usually it rises rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Procter & Gamble can break to all-time highs any time soon, as it only needs to go up a 3.95%. The buy point is at $141.70 if you want to trade with this strategy. The stop loss would be ordered at $127.53

Buy setupBuy pointStop lossRisk
ATH buy setup$141.70$127.5310%
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Should I sell Procter & Gamble stock?

When you are a novel trader and you own stock shares with some profit, it's really hard to decide the good moment to sell and get your benefits. Trading strategies help us to avoid rash decisions based on our personal emotions or the buzz surrounding the market. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for shorting Procter & Gamble stock

As a golden rule, you should not keep a trading operation that generates higher than expected losses at the time of the buy. The moment to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Procter & Gamble stock?

In the current situation of Procter & Gamble there is not any eligible sell setup, so Procter & Gamble stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Procter & Gamble stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous 30 days we couldn't find any rating for Procter & Gamble

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Technical analysis

Since last March, Procter & Gamble has been printing an uptrend that so far marked an amazing 46.37%. During this uptrend, the price offered some buy points on the breakouts. Latest low was in mid-June, when price bounced at $113.05. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $141.70 and $113.05

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use support and resistance levels as a way to find price points in the stock price action that tend to behave as barriers, preventing the price of a stock to move in certain direction. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue declining until finding another support level. On the other hand, resistance levels are where the price tends to find a curb as it moves up. Likewise, the price is more liable to "bounce off" at this level, and if it finally breaks this level, it will climb easily until it approaches the next resistance

The current resistance levels are:

  • R1: $141.70 (3.95% above)
  • The current supports are:

  • S1: $126.44 (-7.24% below)
  • S2: $124.23 (-8.86% below)
  • S3: $123.42 (-9.46% below)
  • Bollinger bands

    So-called Bollinger bands are a well-established technique developed by John Bollinger. In essence, the Bollinger Bands are bands that flow around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The evolution of the Bollinger Bands on the chart proves that they are relatively close to each other (2.66%), which clearly means that price volatility is low. The tightness of the Bollinger bands is typically a signal of a sharp price movement (up or down), so we must be cautious and manage our buy or sell orders appropiately

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price fluctuations to detect when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI fluctuates from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on September 3 after just crossing to the overbough zone for 1 day (weak signal). The RSI value today was 49.07. Procter & Gamble price dropped a 2.99% since RSI lost the overbought zone

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    Earnings and financials

    PG hosted the investors event and released the second-quarter report in late July. PG presented second-quarter earnings of $1.16 per share on sales of $17.7 billion. The market estimate was $1.01 per share on revenue of $17.0 billion.

    By comparison, the EPS for the same quarter last year was $1.10, so posted EPS means a increase of 5.45%. Turnover merely moved on an annualized basis in the 2nd-quarter, from $17.1B to $17.7B last quarter.

    PG is hosting the quarterly earnings call on mid next October. Market analysts analysts forecast a per-share earnings of %s of $1.41, that is a 21.55% higher than Q2. Financial reporting day has a more than usual risk for stock traders as the data posted can gap up or down the shares price with lower volume and not respecting your buy or stop-loss orders. You can uncover more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.pginvestor.com.

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