Stock of the day: Procter & Gamble

Today’s analysis will be just a quick update on the situation at Procter & Gamble. We analyzed this instrument on Tuesday when the price was flirting with major support. Back then, we signaled the possibility of a bearish breakout. This is how we concluded our previous piece:

“Price closing a day below the red neckline will be definitely an invitation for a bearish correction. On the other hand, price bouncing and advancing higher can potentially deny the triple top formation and totally cancel it bringing a proper buy signal.”

Although the second option seemed more appealing, sellers won this battle and managed to break the neckline, closing a day below it. As we said, this is a sell signal and most probably, in the next few days, the price will be going south. As for the target, on the chart, you can see Fibonacci levels and 38,2% is always a good place to start talking about the potential supports. After yesterday’s drop, our view on the P&G is negative.