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by Darius Anucauskas

Procter & Gamble (NYSE: PG) – Technical Outlook

Procter & Gamble (NYSE: PG) is set to report its earnings for Q2 this Tuesday, the 31st of July, before the US opening bell. Revenues are expected to have grown and the earnings-per-share ratio is also expected to have increased to $0.90, from $0.85 the same time last year.

From the technical side, we can see that, after its reversal back to the upside on the 3rd of May, the stock continues to travel higher. The rise is supported by the upwards moving trendline, that started from the low of the aforementioned date. That said, we can see that on Thursday and Friday last week, PG was not able to overcome its 200 EMA line, which acted as strong resistance. This area was around the 80.80 level, which held the price from accelerating further back on the 9th of March.

For now, we remain bullish over the Procter & Gamble’s near-term outlook. If we get a break through the 80.80 level, the next potential area of resistance could be seen around the 83.30 hurdle, marked by the high of the 16th of February. Above that hurdle lies the next potential resistance line at around 85.50, which held the price from dropping lower on the 18th of May and the 7th of November last year.

On the downside, for us to take the bearish side, we would need to see a break and a close below, not only the previously mentioned upside trendline, but also below the area between the 77.85 and 77.30 levels. That area acted as a key support zone throughout July and a few times in March and April. A break of it could set the stage for a move lower towards the 75.00 mark, which acted as support on the 21st of June. A further decline could open the path to the 72.75 zone, marked the be the low of the 1st of June.

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