Is Procter Breaking Out?
Published on Friday, 05 October 2012 07:56 Written by TradersHuddle Wire
New York, October 5th (TradersHuddle.com) - Shares of Procter & Gamble Co. (NYSE:PG) closed the session at $69.38 just above calculated resistance at $66.93. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.
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.