Here is an interesting stock chart I created.
This is perhaps the best chart I have gotten through in the
last week of March. First, I want to denote the horizontal trend
this stock has been experiencing since early 2010 till mid 2012; consolidating
sideways between the levels 59.22 and 68.12 developing well-built S/R levels.
If you stop a second and focus at $PG’s price action, you will find plenty of
chart patterns alongside with reliable trading opportunities. I included an upward
Gann Fan (Redlines) to identify the trend and specific key levels between the
2x1(26.75) and 4x1(15) angles. $PG is at the moment very accumulated, having
several technical indicators showing the price to be overbought; in my opinion
I don’t expect the trend to withhold in the near-term. The two bold parallel
white lines are two standard deviation channels, which roughly 95% of all data
fall under these two boundaries. It is “expected” for the trend to reverse when
price hits the lower or upper SD line. Finally, the two pink
ovals serve as what I consider to be the price targets if the stock breaks
below the rising yellow line that is at the current price of $75.51. In
addition, $PG has a trailing PEG of 2.4, which indicates that the stock is
trading at a premium of 29% from its 5-year average of 1.8, therefore making the
stock very expensive.
Alexander Schachter
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