Consumer staples giant Procter & Gamble (PG) beat earnings per share (EPS) estimates on July 30, extending its winning streak to 21 consecutive quarters. The shares are listed higher and set its intraday high of $135.97 on Aug. 12. It was just above this week’s risky level at $135.21, where some profit taking was warranted.
The action has ended on Wednesday, August. 12, $135.46, up 8.5% year to date, and in the bull market territory at 43.6% above its March 23rd low of $94.34. The stock is overvalued with a P/E ratio of 26.02 and a dividend yield of 2.37 percent, according to the trends.
P&G is a component of the Dow Jones Industrial average. In the supermarket, you will find the company of beauty, health care, personal hygiene and child care products as you shop in the aisles. Given the risks associated with the COVID-19 pandemic, consumers are hoarding, some of these products.
The daily chart for Procter & Gamble
Procter & Gamble stock began to 2020, with a bear market correction, up 26.3% from a peak of $128.07 on Feb. March 21 to 23, the bottom of $94.34. Then came the bull market of 44% in the Aug. 12 high of $135.97, when the weekly risky level at $135.21 has been tested.
The stock has broken below its 50-day simple moving average (SMA) on Feb. 24, and then the 200-day SMA failed to keep the 18 March, which led to the March 23 low. The death of the cross, which occurred on March 27, has been ignored because of the V shape in the bottom of the formation for the stock. In April 7, P&G stock back to its 50-day and 200-day SMAs.
The 50-day and 200-day SMAs were magnets between the 14 April and 1 July, when the third quarter rally has begun. Before that breakout, the stock has stabilized between its semi-annual and annual pivots at $116.84, and $119.40, setting the stage for the rally. Buy to buy the area is the reason to reserve a portion of the profits on the strength of this week’s risky level at $135.21.
The weekly chart for Procter & Gamble
The weekly chart for Procter & Gamble is positive but overbought, with its five-week modified moving average at $127.32. The stock is well above its 200-week SMA, or the return to the average, to $98.21. The stock was a buy at this moving average when it was $94.77 during the week of March 27.
The 12 x 3 x 3 weekly slow stochastic reading is in the increase of 89.51 this week, from 86.06 to the August. 7. The next week, this reading will probably be above 90.00, which will put the broth in a “swell parabolic bubble” of the training.
Trading strategy: Buy Proctor & Gamble stock on weakness to its annual value level of $119.40 and reduce inventory weekly risky level at $135.21.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each level uses the past nine closes in these time horizons.
The third quarter of 2020 the level has been determined based on the 30 June close, and the level in the month of August has been established according to the July 31 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.