P&GAMBLE, High Volatilty-Stock, Huge Triangle-Breakout Incoming!Hello, Traders Investors And Community, welcome to this analysis about the recent events, the current formation, and what we can expect in what the last weeks have shown us highly volatile stock PROCTER&G. As I mentioned already in past analysis about the stock-market we are progressing in historical levels within the whole market where we can observe big differences within the individual stocks and its price-levels, as some looking more bullish and have taken out all-time-highs already there are some stocks which show high downside potential. A big factor in these differences is the corona-crisis where we have gainers and losers either profiting out of the crisis or not because of the bad lineup in the real economy. Within P&G we have a stock which is consolidating in an increasing tightening range that will show a huge breakout the next times, although the bearish breakout is possible there are some stronger signs which making the bullish breakout more attainable.
When looking at my chart you can see that the stock is trading in this huge symmetrical triangle with the tightening pace and the current consolidation above the 100 and 30-EMA you can see marked in my chart with orange and light-green which is a decent bullish signal at the moment which can be the determining factor contributing to the upcoming bullish breakout. When looking at the past weeks and months we can examine that this is a highly volatile stock showing the big price swings in the past which can prove profit full for an intelligent trader with the right arrangement in the market. Compared to the leading index S&P 500 and other stocks we have a definite consolidation in this stock at the moment which can change as mentioned but compared to other stocks like BERKSHIRE or J&JOHNSON we have the confirmation of the underlying trend and tendency still awaiting within P&GAMBLE here. Counting all these factors together and in comparison with the other stocks, we can come to the conclusion that a breakout to the upside and visiting of all-time-high levels is more possible with this stock than the breakout to the upside.
COMPARISON STOCK: Stronger Than The Market: J&JOHNSON (4-Hour Timeframe):
COMPARISON STOCK: Weaker Than The Market: BERKSHIRE (4-Hour Timeframe):
After the stock has confirmed the breakout it can be traded with an entry immediately after the breakout or with a revisit of the higher boundary and a conservative entry, traders should decide according to individual risk-preferences. Remember that the breakout has to show with solid volatility to the upside a mere piercing and fall back into the triangle will indicate a fake breakout. When considering the corona-crisis factors the stock is a consumer durable which can show an anticlinal market-movement as consumer goods had a high demand in the lock-downs, this demand can increase again when there are coming new corona-restriction waves. We saw this demand also with the high bounces to the upside in this stock during the corona-breakdown period. So according to the current situation we have also a more bullish environment within the fundamental side of things, therefore, it will be interesting how this scenario plays out properly.
In this manner, thank you for watching, support for more market insight, good day and all the best!
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Information provided is only educational and should not be used to take action in the markets.
