Is Procter Closing in to Resistance?

Published on Thursday, 30 August 2012 08:44 Written by TradersHuddle Wire

New York, August 30th (TradersHuddle.com) - Shares of Procter & Gamble Co. (NYSE:PG) are trading very close to calculated resistance at $66.93. The stock ended the trading session at just $66.87, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $59.07 and by the resistance level at $66.93; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Procter. However, as the stock pulls back towards $59.07 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $66.93 then traders will get an opportunity to enter the stock as it moves to a higher range.