CL closes within previous day's range
Colgate-Palmolive (CL) Technical Analysis Report for Oct 12, 2018
CL ended the week -3.35% lower at 62.54 after gaining $0.19 (0.3%) today, strongly underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CL as at Oct 12, 2018):
Friday's trading range has been $0.99 (1.58%), that's slightly above the last trading month's daily average range of $0.93. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CL.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on October 5th, CL actually gained 0.99% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 66.39.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 61.28, downside momentum might accelerate should the stock break out to new lows for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Colgate-Palmolive. Out of 240 times, CL closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.33% with an average market move of 0.44%.