Recent share price action of consumer products giant signals a breakout.
Procter & Gamble Co. declined from $73.57 to $43.93 (A-B), had a recovery rally to $63.48 (C) and a trading range between $59 and $67.
This price action produced a bullish technical pattern known as a V-Extended (dashed lines). Recent price action (D) signalled the breakout from this formation and the start of a new major up-leg. A better entry point may occur near about $67, but only a decline below about $65 would be negative.
Point & Figure measurements provide targets of $79 and $89.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.