PG, Procter & Gamble, is poised to break out to the upsideOn December 29, 2021, Procter & Gamble (PG) reached new all-time highs, touching the $164.40-$165 range for the first time. This level was tested multiple times until February 4, 2022, but consistently faced rejection.
Following the February attempt, the price was driven down over five weeks to a low of $143. However, PG recovered, and after another 5 weeks, it revisited the $164.40-$165 zone on April 22, 2022. It touched the area a couple of times, but faced another rejection, this time amidst a bear market, leading to a drop to $121 by October 21, 2022
Fast forward one year and seven months to May 7, 2024, PG broke through resistance and set new all-time highs. After that PG has spent 40 days contesting the $168.50-$169 area and now seems ready for another breakout to record highs.
Historically, breakouts after prolonged consolidations can persist, and PG appears to be embarking on this journey. An evident accumulation pattern lends credence to this outlook.
Using our Box Trading method, we see an initial target at $174. If $174 is exceeded, the next target is $188-$189, which is consistent with other analyses.
Is there room for error? Certainly. Technical analysis isn't infallible, and unforeseen events could disrupt the trend. Traders must remain vigilant for any signs of trend deterioration and respond accordingly to price action.
We're considering intiating a 30 to 60-day call spread to capitalize on this upward momentum, once PG moves above $189,
