Approaching Resistance - Procter

Published on Tuesday, 07 September 2010 05:44 Written by TradersHuddle Staff

New York, September 7th (TradersHuddle.com) - Shares of Procter & Gamble Co. (NYSE:PG) are trading very close to calculated resistance at $62.89 with the current price action closing at just $60.29 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $59.17 and by the resistance level at $62.89, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Procter, as the stock is well above support, however, as the stock pulls back towards $59.17 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $62.89 then traders will get an opportunity to enter Procter stock by establishing a position as the stock moves to a higher range.