Stock of the Day: Procter & Gamble

And now let’s move to today’s stock of the day and take a look at Procter & Gamble. On the daily chart, Procter & Gamble has recently developed an interesting reversal structure. Price formed a clear double bottom formation, marked with a green rectangle. This pattern already delivered an initial bullish signal earlier in January, when the stock managed to break above the mid-term downtrend line. This line, marked in red, also acts as the neckline of the double bottom formation, and its breakout gave buyers momentum during the second half of January.

However, the technical picture becomes more demanding as price approaches higher levels. On the chart, we can also identify a black long-term downtrend line, connecting lower highs since February and March 2025. This trendline represents a major structural resistance, and price has recently moved very close to breaking it. At this stage, the move cannot yet be classified as a confirmed breakout.

What we are currently observing could still turn into a false breakout. In this context, that would be a negative signal, as it would suggest that buyers are unable to maintain control at higher prices. If the market starts to print bearish daily candles and moves decisively away from the long-term downtrend line to the downside, that would confirm the false breakout scenario and generate a valid signal to sell.

On the other hand, if Procter & Gamble manages to push higher and print new yearly highs, that would confirm a clean breakout above long-term resistance. Such a move would significantly improve the technical outlook and provide a strong confirmation signal to go long.

At this stage, Procter & Gamble is trading at a key technical crossroads. The next few daily closes will be crucial in determining whether this structure resolves into a failed breakout or the beginning of a broader bullish trend.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-procter-gamble-4