NEW YORK (TheStreet) -- Procter & Gamble (PG) gained over 1.5% on heavy trading on Tuesday. It was the second straight day of aggressive bullish interest for the stock, signaling that a significant bottom may be forming.
As last week came to a close, P&G was in the process of testing a major support zone. This week began with shares relatively flat as the stock sat just above $77. Soon after Monday's opening bell, investors began to put money to work as P&G held near its July 2014 spike low. The bullish flow continued on Tuesday, allowing the stock to regain its key Aug. 1, 2014 gap support at the $78 level.
The accumulation wave that has hit the shares this week, just as major support came into play, may usher in a healthy rebound move for P&G. At Monday's low, the stock was off over 18% from its December peak and is working on its sixth straight lower monthly high.
Late in Tuesday's session, P&G faded a bit after battling heavy resistance near the April low. The stock may need a bit of back-and-fill action before this level gives way at $79. A fade back down to the $78.50 to $77 area would offer a low-risk buying opportunity for patient bulls. A close below $76 would indicate that a more drawn-out basing process is ahead. If P&G can maintain its footing near current lows, a rally back up to the $81 area (March low/50-day moving average) would be a logical initial target.