Stock of the day: Procter & Gamble
16 March 2023
This is a short update on the situation regarding Procter & Gamble. We previously analyzed this instrument on March 8th when the price was trading within a tight range and testing its lower boundary. As long as we were inside the correction, the way was open in both directions. Here's what we concluded in our previous analysis:
“Currently, P&G is testing its lower boundary, suggesting a possible breakout. If the price breaks below the lower line of the rectangle, it would indicate a signal to sell. Conversely, a breakout above the upper line of the formation would signal a buy.”
Buyers defended the support and bounced higher. Yesterday, the price managed to break the upper line of the sideways trend, which is quite an accomplishment given all the turmoil caused by SVB and Credit Suisse. The strength since Monday is truly extraordinary. Today, PG will fight a very important battle. If the buyers want the buy signal to persist, they need to close the day above the upper yellow resistance. A price drop below would create a false breakout, which buyers definitely do not want. Thursday started a bit lower, but the first few minutes bring us an upswing, so we can see that demand is trying.