Is Procter & Gamble Stock Oversold? Key Technical Levels to Watch

Procter & Gamble (NYSE: PG) shares are currently showing signs of being oversold, presenting a potential buying opportunity for short-term traders and long-term investors alike. The stock is trading near $152.89 and is now testing a long-standing upward trendline that dates back to May 2018.

Historically, this trendline has acted as a reliable support level. Since 2018, Procter & Gamble's share price has touched this line on only two occasions—each time resulting in a subsequent rally. Should the stock begin to consolidate around current levels, it may attract renewed buying interest, potentially driving the price back up towards the $160 resistance zone.

A successful break above the $160 resistance could pave the way for further upside momentum, with the next key resistance level situated around $170.

However, downside risks remain. The current weekly candlestick has slightly dipped below the trendline, raising questions about the sustainability of the support. While this could be a classic bear trap—a temporary dip before a reversal—it’s crucial to watch for a confirmed close below the trendline. Such a move could open the door to a deeper correction, with the next support level likely around $143.

Adding weight to the bullish case, the MACD (Moving Average Convergence Divergence) indicator shows the stock is at its most oversold level since 2022. This technical signal may indicate that near-term buyers are preparing to step in, anticipating a potential bounce.

Key Takeaways for Traders and Investors:

• Support Level: Long-term trendline dating back to May 2018 is being tested.

• Resistance Levels: Immediate resistance at $160; next major resistance at $170.

• Downside Risk: A break and close below the trendline could lead to a move towards $143.

• Technical Indicator: MACD shows oversold conditions, suggesting possible short-term upside.

Investors watching Procter & Gamble should closely monitor price action near current levels, as the coming days could determine whether the trendline continues to hold or gives way to further selling pressure.
 

(Daily Timeframe Below)

 

Note: RSI oversold