Proctor & Gamble Breaks Out To New Highs: An Analysis

Proctor & Gamble makes toothpaste and other products purchased by what are known in the business world as “consumers.” The stuff has been selling well lately as the company keeps reporting better and better earnings and revenues. P&G PG keeps beating the expectations of Wall Street’s analysts.

This week, the stock just kept rolling and new all time highs were posted. The big old-name toothpaste maker had a better week than Bitcoin, Ethereum, Microsoft MSFT or the Russell 2000 Index, none of which made new highs. The Consumer Staples Select SPDR Fund, of which P&G is a component, DID get there.

It’s probably worth noting that Proctor & Gamble is held by Berkshire Hathaway, the Warren Buffett and Charlie Munger fund that many large institutional investors keep an eye on. As of 9/30/2021, Berkshire owned 315,000 shares of P&G. Is it possible that the Omaha legends have been adding to the position lately?

Here’s the daily price chart for Proctor & Gamble:

Investors are buying this stock as if it’s going out of style. I remember when tech stocks of the “hyper-growth” era used to have price charts that looked like this. Suddenly, toothpaste is popular. That slight gap up in early December at about 150 may have to filled at some point. Note that both P&G’s moving averages trend upward.

The weekly Proctor & Gamble price chart looks like this:

From late 2018 to the present, the 200-day moving average has never stopped trending upward nor been touched again by price. P&G sold off along with almost all other stocks during the March/April 2020 pandemic scare. Since then it’s only visited the up trending 50-day moving average twice before heading up again.

Here’s the monthly price chart for Proctor & Gamble:

From 120 in March of this year to 155 in December, that’s a nice move. That the stock is so far above the moving averages is a concern but it’s hard to complain if you own shares. Whoever is responsible for that huge buying volume bar in mid-2016 has done well.

The point-and-figure chart for Proctor & Gamble looks like this:

Now that’s a clear up trend from mid-2018 to this week. Note, in the upper left corner, the green “P and F Pattern: Ascending Triple Top Breakout on 16 November 2021.” Good call. This is why many price chart analysts continue to double check the point-and-figure pages.

It’s possible that large equity funds have been switching to consumer products like Proctor & Gamble as a way to stay within certain requirements. Like, you can’t go to more than 15% cash, so what do you do? You might be selling tech (or whatever) and putting that money into toothpaste. That’s one explanation, who knows?

Not investment advice. For educational purposes only. Always consult with a registered investment advisor before making any decisions.