Don't Ignore This Chart

Procter & Gamble Attempts to Turn

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The Consumer Staples SPDR (XLP) has been leading the market since early May and Procter & Gamble is the largest stock in the sector (12.58%).  On the price chart, PG is in the midst of a long-term trend change and the short-term trend is also turning up.

First and foremost, the long-term trend is turning up as the 50-day EMA moves above the 200-day EMA. This crossover is still in the early stages, but it is a positive sign as long as it holds.

As with XLP, PG is leading over the last four months, but lagging over the past year because it remains well below its January high. The S&P 500 SPDR, in contrast, hit a new high in late August.

Short-term, the stock is also turning up as it breaks above the flag line with a surge the last few days. The indicator window confirms this upturn with the PPO (5,30,5) moving above its signal line.

The August-September lows and May trend line can be used to mark support in the 80-81 area. A close below 80 would break this support line, as well as the two EMAs, and call for a re-evaluation.


Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst, StockCharts.com

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill


Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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