Current trend

The shares of The Procter & Gamble Co., one of the leaders in the consumer goods market, fell by 5.0%, reaching 160.94 (Murrey level [3/8]).

The negative dynamics are developing against the Q4 financial report. The company’s revenue amounted to 20.53B dollars against the forecast of 20.74B dollars, and net profit – 3.14B dollars, less than in the same period last year at 3.38B dollars. Net income per share decreased from 1.37 dollars to 1.27 dollars YoY, and adjusted income per share reached 1.40 dollars, more than the experts expected 1.37 dollars. The indicators were affected by a 9.0% decline in sales in China, the company’s second largest market, while sales in the US domestic market grew by 4.0%. However, the corporation’s CEO, John Moeller, said that the management does not feel pressure from falling demand for its products and expects earnings per share to grow in fiscal 2025 to 6.91–7.05 dollars, more than the average expert forecast of 6.97 dollars, and the annual increase in sales could reach 2.0–4.0% instead of the 3.0% predicted by analysts.

In the medium term, the issuer’s securities may resume positive dynamics with the support of the expected cut in interest rates by the US Fed in September, the likelihood of which was announced yesterday by the head of the regulator, Jerome Powell. The regulator’s decision will strengthen the recovery of the American economy, ease the financial situation of households, and increase consumer demand.

Support and resistance

The trading instrument is trying to leave the long-term ascending channel, testing its lower border. Consolidation below 159.38 (Murrey level [2/8]) will allow it to reach the area of ​​156.25 (Murrey level [0/8]) and 153.12 (Murrey level [–2/8]). In case of a breakout of 162.50 (Murrey level [4/8], the lower line of Bollinger Bands) upwards, growth to the area of ​​165.62 (Murrey level [6/8]) and 168.75 (Murrey level [7/8]) is expected.

Technical indicators do not give a single signal: Bollinger bands are horizontal, the MACD histogram has moved into the negative zone, and Stochastic has turned down.

Resistance levels: 162.50, 165.62, 168.75.

Support levels: 159.38, 156.25, 153.12.

Trading tips

Short positions may be opened below 159.38, with the targets at 156.25, 153.12 and stop loss 161.50. Implementation period: 5–7 days.

Long positions may be opened above 162.50, with the targets at 165.62, 168.75, and stop loss 160.40.