Procter & Gamble Co (NYSE: PG) will be delivering its earnings before the US opening bell today. The consumer staples giant, which owns big household brands such as Gillette, Head & Shoulders, Tide, Ariel and Pampers, is expected to show decent results, despite the adverse pandemic period. In fact, P&G is one of those companies that may benefit from the lockdowns across the globe, due to people staying at home, which could increase the usage of the company’s products. Investors see PG stock not as a high-earning security, but rather as an option to diversify and protect their portfolios from unpleasant market fluctuations. The stock also pays good dividends, as the size and profitability of the company allows it to maintain this feature for its investors. That said, a surprize miss on the 2020 Q4 earnings could bring the share price a bit lower.
The technical picture of PG is currently supporting the idea of seeing a small setback, as yesterday, the share price fell below its key support area, at 134.71, marked by the lowest points of September and October. That area is also seen as a so-called “neckline” of a complex head-and-shoulders pattern, which tends to be a bearish sign. If the stock continues to trade below the 134.71 zone, we will stick to the negative scenario.
A further slide could bring PG to the 132.14 hurdle, marked near the highs of July 30th and August 6th, which also coincides with the 200-day EMA. If that area is not able to stop the fall, the next potential targets might be at 129.28, or at 125.32. Those levels are marked by the lows of July 31st and 27th respectively.
The RSI and the MACD on our daily chart are pointing lower. In addition to that, the RSI is sitting below 50 and the MACD is running below zero and its trigger lines. The two oscillators show increasing downside speed, which comes inline with the above-mentioned idea.
Alternatively, if the share price reverses to the upside, breaks a short-term tentative downside line, taken from the high of November 9th, and then climbs above the 141.03 barrier, marked by the current highest point of January, that may invite more buyers into the game. PG might drift to the 144.48 obstacle, a break of which could set the stage for a push to the all-time high, at 146.96.
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