Type to search

Todays Big Stock Wealthpop News

Why Procter & Gamble Could Make A Bullish Run To Its 52-Week High


Like all our favorite trades that come with a straight forward setup, the chart for Procter & Gamble (PG), is setting up in a way that aligns with our trading style. That means, nothing fancy and nothing ambiguous, just an old fashioned test of resistance.

This resistance level comes at around 155, where price is just slightly under right now. As you can see by the PG chart, this level has come in to play several times as support turned resistance and so on. However, now, price is coming up from under this level to once again test the strength of its resistance side of things.

Normally, when a stocks price approaches an overhead resistance level, we would have puts on the radar. But, given the current trend on this stock, we could also watch for a breakthrough of this level to then test the 52-week high of just over 158.

Both trades should be on watch along with watching how price action pans out, giving away where the stock price might go. Will it climb or will it fall?

If it falls, we assume it won’t be by much unless accompanied by some abnormal selling volume, which price action should then confirm. We also have a moving average right below the price, which has acted as support for the stock through the past week or two. This is also something to be mindful of.

If the overall market climbs, then it is reasonable to assume this stock and its price will climb also, again, given the recent trend of the stock over the past couple weeks. Right now, the probability favors climb in our opinion.

What is always a wise approach to a trade like this is patience. Wait and see how price reacts to this key level. For those who want to enter early, do so with smaller size and a tight stop, perhaps using the 50-day simple moving average as a stop level.

For those who want to be patient, wait for a possible rejection of this level and see if we bounce at that moving average. Those who choose patience, remember that we could get a break of this key level with price then falling back down to retest it.

If the retest holds out, then this would be a higher probability entry for the long play. Again, trading is not about rushing. It’s about patience, discipline, and execution. Remember, trade for tomorrow as our primary job as traders is capital preservation.

If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

  • 1

Leave a Comment

Your email address will not be published. Required fields are marked *


It's not goodbye, it's hello Magnifi!

You are now leaving a Magnifi Communities' website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi