Procter Bullish Signs

Published on Friday, 03 September 2010 07:45 Written by Christopher Lynn

New York, September 3rd (TradersHuddle.com) - Shares of Procter & Gamble Co. (NYSE:PG) ended the trading session higher by $0.27 or 0.45% from its previous close. Procter's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Procter & Gamble Company (NYSE:PG), a global consumer products company manufactures and markets its products in countries throughout the world. The Company provides products in the laundry, beauty care, food and beverage, and health care segments. Some of P&G famous brands are Gillete, Tide, Head & Shoulders, and Crest. Proctor & Gamble's products are sold primarily through mass merchandisers, grocery stores, membership club stores, and drug stores. The company uses a diversified distribution channel, it was founded in 1837 as a candle company, and its headquartered in Cincinnati, OH.

Procter's recent stock range has been formed by a trough where calculated support was defined at $59.17 and by a peak that established the resistance level at $62.89, which could be used by traders planning their trades.

Traders wanting to establish a position in Procter or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: