CL runs into sellers again around 76.70
Colgate-Palmolive Company (CL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CL finished the week 0.87% higher at 76.69 after gaining $0.32 (0.42%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.25 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 76.61, Colgate-Palmolive confirmed its breakout through the prior session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (CL as at Feb 14, 2020):
Friday's trading range has been $0.59 (0.77%), that's far below the last trading month's daily average range of $1.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CL.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 76.11 earlier during the day, the stock bounced off the key technical support level at 76.20 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 30th, CL gained 6.20% on the following trading day. After having been unable to move above 76.61 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 76.70.
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 77.41 where further buy stops could get triggered. Trading close to 2018's high at 77.91 we might see further upside momentum if potential buy stops at the level get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Colgate-Palmolive. Out of 462 times, CL closed higher 56.06% 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 60.82% with an average market move of 0.48%.