Is Procter Breaking Out?

Published on Friday, 17 August 2012 08:20 Written by TradersHuddle Wire

New York, August 17th (TradersHuddle.com) - Shares of Procter & Gamble Co. (NYSE:PG) closed the session at $67.00 just above calculated resistance at $66.93. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

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.

The stock was trading in a well defined range with support at $59.07 and resistance at $66.93. Given that this range was broken, traders will be closely monitoring Procter's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Procter is still near the broken resistance level, traders will be focusing on the $66.93 level to see if the stock holds the breakout without rolling over.