
Here's Why Procter & Gamble Might Be About to Break Out
Procter & Gamble (PG) - Get Report is setting up well for a fresh rally. The stock is holding on to its early gains as it pushes into new high ground for the month. P&G remains in the middle of a very narrow four-month consolidation, but an upside resolution is beginning to look more likely.
P&G investors should take a more positive view of the stock as we head into next week.
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Shares of P&G began to show signs of exhaustion in mid-February. In early March, the stock managed to put in a slightly higher high before suffering through a six-day selling wave after topping just below $84. In mid-March, P&G, after a huge spike in volume, returned to the highs but was once again turned away.
The major resistance zone near $83.85 remained in place through the remainder of the month and well into April. During this process, the February low marked the lower band of the consolidation. This level, near $79.50, did a great job of holding both the April and May lows.
As shares began to lift this week, a second straight higher monthly lows is now in place. For patient P&G investors, this is a healthy setup for an upside breakout.
In the near term, P&G bulls should consider the stock a fairly low-risk buy near current levels. A close back below this week's low of $80.75 would violate the June low and drop shares back into consolidation mode. On the upside, a close above the May high of $82.90 is a key hurdle. Once past, P&G will be set up well for another challenge of the 2016 highs, this time with a bit more upside momentum in place.
Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long PG.










