Source: PaxForex Premium Analytics Portal, Fundamental Insight

Procter & Gamble shares were up 10.8% last month, according to S&P Global Market Intelligence, as the consumer products titan capitalizes on optimistic projections about its current market position.

Because the company is dealing with a wide range of necessities with some of the best-known brands in the market -- from Crest to Pampers -- its stock could be seen as a perfect defensive asset in an uncertain market.

For example, billionaire investor Nelson Peltz reported that his Trian fund raised its stake in Procter & Gamble, but still not by much. While the fund previously owned 5,457 shares worth $785,000, Peltz's smallest stake, he now owns 5,589 shares worth $706,000.

If we turn to the charts, we see that Procter & Gamble stock has plunged from a 52-week high of $165 per share in May to a low of $122 per share in October, a more than 25% drop. That probably seemed like a good bargain for Peltz, who sits on P&G's board of directors.

Analysts were subsequently encouraged by Procter & Gamble's Investor Day in the middle of the month, during which the consumer products leader said it was paying more attention to delivery growth and value. Because the company's products are in demand and used routinely, consumers make many repeat purchases.

From an operational perspective, President and CEO Jon Moeller said the company has limited its focus to just ten categories, allowing it to focus on products that are growing faster and are more profitable than those the company previously sold.

Wall Street analysts were already more optimistic about P&G before the Investor Day presentation, and analysts such as Credit Suisse and Wells Fargo raised their price targets. They were then joined by others, including Wolfe Research and Jefferies, who also raised their targets.

While there is a possibility that consumers suffering from such high inflation will choose to move to a lower FMCG market, Procter & Gamble's stable product portfolio provides some level of confidence in quality and performance. Wolfe Research sees P&G's global presence - about 70% of its revenues come from markets outside the U.S. - as a strong defensive position.

Among other things, it should not be forgotten that Procter & Gamble has been paying dividends to investors for more than 130 years, a record few companies can match, and has been raising payments for more than 60 years, making it the dividend king.

As long as the price is above 140.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 149.04
• Take Profit 1: 155.00
• Take Profit 2: 165.00

Alternative scenario:

If the level of 140.00 is broken-down, follow the recommendations below: 

• Time frame: D1
• Recommendation: short position
• Entry point: 140.00
• Take Profit 1: 130.00
• Take Profit 2: 135.00