PG Stock can do THIS, it will Skyrocket
PG Stock can do THIS, it will Skyrocket I consider myself a “chartist,” meaning I like to paint pictures on charts using trend lines. Trend lines are by far my favorite and most important tool. The uptrend on the chart above represents the short-term bull market in PG stock that developed after shares bottomed in August 2015. This uptrend is created by connecting the valleys on the price chart. An uptrend can be easily identified, as the price moves from the lower left to the upper right of the chart.
The indicator in the lower panel labeled “MACD” serves as a momentum indicator. Moving average convergence divergence (MACD) is a simple and effective trend-following momentum indicator, Signal line crossings are used to distinguish between bullish and bearish signals. This signal is produced on a monthly scale and serves to smooth out the signal and helps define the longer-term trend. In March, this signal crossed in a bullish manner, indicating that the bullish momentum is outpacing bearish momentum, and that the bulls are in full control.
The price is currently sitting at resistance, and I do not expect this level of resistance to be broken on the first attempt. When the share price finally gathers enough momentum to break out above this resistance level, it would mark a new all-time high for Procter & Gamble stock. New all-time highs are indeed a special event. Investors who are long are all sitting in profit territory, and all of the short sellers are sitting with losses. These short sellers must cover their position at some point or the losses will continue to mount. This event is known as a short covering rally and it helps to further fuel the rally. It is not uncommon for such events to push shares higher than many would have speculated.Click here for reuse options!