Procter Approaching Important Moving Averages

Published on Thursday, 09 February 2012 09:00 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Procter & Gamble Co. (NYSE:PG) closed the trading session at $63.64 near its 50 day and 200 day moving averages currently set at $65.08 and $64.10 respectively. Procter's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $62.70 and calculated resistance at $65.50. These levels should be watched by traders, as they provide insight into the latest price dynamics in Procter shares.

Traders should evaluate their options if they want to establish a position on Procter given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.