The Procter & Gamble Company (PG) - December 29, 2023

DAILY STOCK REPORT: PROCTER & GAMBLE (PG)

At SIA Charts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds and exchange traded funds daily and rank them by who is winning the most in their respective universes. The top 25% are considered the Green Favored Zone, 26-50% make up the Yellow Neutral Zone and the bottom half of each league table is considered the Red Unfavored Zone.

Some stocks are perennial underperformers, particularly many so-called “value” stocks; mature names that tend to rise at a slower pace in bull markets compared to “growth” stocks. One case in point is consumer products giant Procter & Gamble (PG).

This long-term relative strength shows that PG has spent most of the last fifteen years in the Red Unfavored Zone of the SIA S&P 100 Index Report. Most of its forays upward have faltered in the yellow zone, and the shares have not been in the green zone since early 2020.

PG has been tumbling down the rankings in recent weeks, falling 34 spots to 83rd place over the last month. In the last month, the shares have dropped 4.3%, while the S&P 100 Index (OEX.I) has climbed 4.0%, and the Dow Jones Industrial Average has moved up 6.5%.

Candlestick Chart Keeps Grinding Sideways:

Procter & Gamble (PG) actually staged quite a strong recovery up off the October 2022 market bottom, clawing back all of its bear market losses by last summer. The shares were unable to overcome resistance and blast through previous peaks in the $155.00 to $157.50 range, however, and since then they have been trading in a sideways range between there and support near $140.00.

Currently, signals are mixed with a symmetrical triangle of lower highs and higher lows starting to form. In this case it appears to be a sign of a trendless market searching for direction. A decisive move above $155.00 or below $140.00 would indicate whether bulls or bears have gained the upper hand.

Point and Figure Chart Continues to Consolidate:

There is such a lack of trend and so little action in Procter & Gamble (PG) shares that we had to go to a 1% chart to find anything of interest to talk about. In late 2022, PG shares staged a big recovery rally along with the broader market. For the first eight months of this year, the shares continued to climb at a moderate pace but ran into resistance at their early 2022 peak near $157.00. Since then, PG has gone into consolidation mode with a symmetrical triangle of higher lows and lower highs forming, indicating indecisiveness among investors over what to do next.

Initial upside resistance currently appears near $151.00, then $157.10 based on a 3-box reversal, then the previous peak. Previous column highs and lows suggest potential downside support near $142.20, $139.40, and $136.65.

With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, PG is exhibiting short-term weakness against the asset classes.