Procter & Gamble Disappoints and Share Prices Could See a Downtrend
The consumer goods giant missed on its reported revenue and there's reason to believe the stock is headed lower.
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Procter & Gamble PG reported a non-GAAP EPS of $1.40 Tuesday morning, which beat estimates by $0.03, and revenue of $20.53 billion, which missed by $210 million. Organic sales missed expectations. Shares of PG are lower in the pre-market.
Let's check out the charts and indicators to see how traders may respond.
In this daily bar chart of PG below, I can see that prices have been in an uptrend since October. Prices made a retest in December and then turned higher. PG still trades above the rising 200-day moving average line but it is likely to break the 50-day line based on the pre-market action. The On-Balance-Volume (OBV) line has risen from a low in December but has turned sideways since late June suggesting a balance between buyers and sellers. The Moving Average Convergence Divergence (MACD) oscillator is only slightly above the zero line.
In this weekly Japanese candlestick chart of PG below, I have to imagine where prices are trading early Tuesday. Prices are above the rising 40-week moving average line but it could get tested in the days ahead. The weekly OBV line has been in an uptrend in the past two years. The MACD oscillator has begun to correct since June.
In this daily Point and Figure chart of PG below, I can see that a trade at $160 could turn this chart negative.
In this weekly Point and Figure chart of PG below, I can see a similar setup as the daily chart above. A trade at $160 will likely turn this chart bearish.
Bottom line strategy: Back on leap day (February 29, 2024) I wrote about PG and noted that, "Traders who used the dip in PG earlier this month to buy should continue to hold those positions. Raise stops to your entry level. $170 and then the $200-$215 area are my price targets for now."
Prices reached my $170 price target and I hope that some traders took profits. Traders should now get to the sidelines and let's wait for the dust to settle. Prices could go sideways for a while or start a downtrend. We'll see.
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