After a big surge in February, PG moved into a trading range and the Bollinger Bands contracted significantly. This "squeeze" means volatility is contracting, which in turn could foreshadow a volatility expansion (range break). A close above the upper band would be bullish, while a close below the lower band would be bearish.
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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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