by Shane Ormond
On Jan 21, 2020
Now that the Chinese factory is complete (and just in time for a deadly virus outbreak), self-proclaimed “Buff Mage” Elon Musk is turning his attention to Germany, where colonies of bats and unexploded World War II bombs threaten to undermine investor confidence. (Those are not metaphors.)
Yesterday, we looked at a Daily Price Chart of Bristol Myers Squibb Co., and noted that the stock had been making a series of 52-Week Highs.
Today’s Chart is for Procter & Gamble Co. (NYSE: PG).
The Procter & Gamble Company provides branded consumer packaged goods to consumers. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.
The Daily Price Chart below shows that PG has traded in a clear bullish pattern of higher highs and higher lows since January.
Track the Price Chart from lower left to the upper right…
This metric tends to herald a further advance in stock prices.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way, which present a buying opportunity for us.
Purchasing PG after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has produced a healthy return.
On August 5th, PG stock experienced a pullback which offered a good buying opportunity for the savvy investor.
If you had purchased PG shares on August 5th you would already be up 10.2% on the stock by now.
But… if you had purchased the right PG option contract on August 5th, you would be up 43.44% in the same amount of time.
That’s the power of options, after all.
We’ll keep watching PG as it tops its previous highs and waiting for price pullbacks.
Editor, Chart Of The Day