Procter & Gamble Drops to New Lows

Procter & Gamble (PG) is taking out last week's low today. The stock is off just over 1% and is now at fresh November lows. The consumer goods company has been struggling below its 200-day moving average since the ugly Nov. 10 breakdown as a stronger dollar put extreme pressure on big U.S. exporters. More downside for this A-rated firm is likely in the near term.

Last week's two-day selloff, on Nov. 9 and 10, left behind an ominous spike high. In late September and into early October Procter & Gamble was under extremely heavy accumulation as it reached new 52-week highs. After the mid-October breakdown the stock battled back with the help of a strong earnings report but the upside momentum was short-lived. P&G remained soft during the two and half weeks after the earnings breakout. The stock, though damaged, remained above its 200-day moving average until last Thursday. This overhead pressure is in control of the action now.

As pressure increases P&G investors should keep a close eye on the $81 to $80 area. This major support zone is marked by the stock's 40-week moving average as well as the June/Brexit low. Considering the deeply oversold MACD (moving average convergence/divergence indicator) development as this key zone comes into play, a very low-risk entry opportunity will present itself if a base can be built near the June low.

Long PG

More from Stocks

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

Novo Nordisk Stock Rises 4% Over 2 Sessions

Novo Nordisk Stock Rises 4% Over 2 Sessions

Stock Market Just Took Another Beating -- Here's What You Need to Know

Stock Market Just Took Another Beating -- Here's What You Need to Know

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins