Current trend

Shares of The Procter & Gamble Co., one of the leaders in the consumer goods market, are correcting at 168.00, staying close to the year’s high of 170.00 after the publication of a positive financial Q2 report.

Management reported organic sales growth of 4.0% and sales volumes in the North American and European Union markets of 5.0% and 8.0%, respectively, while core earnings per share changed by 12.0%. As for the quarterly figures, revenue amounted to 20.53B dollars, slightly lower than last year’s 20.6B dollars, and earnings per share were 1.40 dollars, exceeding 1.37 dollars previously, which, among other things, was achieved thanks to the development of the e-commerce sector. In particular, sales of The Procter & Gamble Co. products on online platforms currently account for 18.0% of the total volume, confirming the successful business diversification. The new strategy reduces the share of sales of cosmetics and personal care products, developing other areas.

Last week, on August 15, shareholders got 1.0065 dollars per share, corresponding to a quarterly yield of 2.39%.

Support and resistance

On the daily chart, the quotes are trading in a correction trend, forming an ascending channel with boundaries of 173.00–160.00.

Technical indicators maintain a buy signal, which may strengthen soon. Fast EMA on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, rising in the buy zone, forms bars with an upward trend.

Support levels: 165.60, 160.40.

Resistance levels: 169.30, 175.00.

Trading tips

Long positions may be opened after the price consolidates above the resistance level of 169.30, with the target at 175.00. Stop loss – 166.00. Implementation period: 7 days or more.

Short positions may be opened after the price consolidates below the support level of 165.60, with the target at 160.40. Stop loss – 168.00.