After a sharp decline and gap down, Procter & Gamble (PG) moved into a tight trading range the last three weeks. The pink lines show a pennant or small triangle taking shape. The blue lines show Bollinger Bands (10,2) narrowing as well. A break below the lower band would be bearish, while a break below the upper band would be bullish.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. 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 market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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