CL closes above its opening price after recovering from early selling pressure
Colgate-Palmolive Company (CL) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
CL finished Wednesday at 71.34 gaining $0.19 (0.27%) on high volume, slightly underperforming the S&P 500 (0.58%). Trading up to $0.19 lower after the open, Colgate-Palmolive managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 9th, CL gained 0.92% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CL as at May 15, 2019):
Wednesday's trading range has been $0.44 (0.62%), that's far below the last trading month's daily average range of $1.01. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CL.
Buyers managed to take out the key technical resistance level at 71.23 (now S1), which is likely to act as support going forward. After having been unable to move lower than 71.13 in the previous session, the market found buyers again around the same price level today at 70.99.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 71.97 where further buy stops could get triggered. With prices trading close to this year's high at 72.85, upside momentum might accelerate should the stock be able to break out to new highs for the year. As prices are trading close to May's high at 72.47, upside momentum could speed up should the share mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Colgate-Palmolive. Out of 816 times, CL closed higher 51.96% 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 56.37% with an average market move of 0.23%.