Here are 5 bullish reasons
Let’s talk about why Proctor & Gamble appeared on the bull watchlist of our weekend Scouting Report. This exercise will help you better understand what makes a quality swing trade idea.
First, the daily downtrend that began in January finally bottomed out at $136. The past month formed a sideways base that saw buyers defend $136 support at least four times. Last week’s rally carried prices to the range’s top end, creating a bullish breakout pattern.
Second, the fact that prices rallied every day last week when the broader market was volatile and sinking signals powerful relative strength.
Third, volume swelled during the rally suggesting institutions and big buyers entered the fray. PG acted as a safe haven during the turmoil.
Fourth, there is room to run overhead between $143 and $150. This pocket made it easy to map out the potential reward of $7.
Fifth, using the previous day’s low or rising 9 EMA as a stop loss limits the risk to $2 to $3, making this a low-risk-high-reward opportunity.
Chart of the Day: Proctor & Gamble (PG)
PG is triggering this morning by breaking through the $143 resistance.
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