CL pushes through key technical resistance level
Colgate-Palmolive Company (CL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CL ended Thursday at 63.82 gaining $3.93 (6.56%), slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 62.22, Colgate-Palmolive confirmed its breakout through the prior session high after trading up to $2.12 above it intraday.
Daily Candlestick Chart (CL as at Mar 26, 2020):
Thursday's trading range has been $4.15 (6.88%), that's slightly below the last trading month's daily average range of $4.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CL.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 63.20 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, CL actually lost -3.58% on the following trading day. Prices are trading close to the key technical resistance level at 66.32 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 65.88 where further buy stops might get triggered. Trading close to 2018's low at 57.41 we could see further downside momentum if potential sell stops at the level get activated.
Among the seven 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 786 times, CL closed higher 53.94% 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 55.98% with an average market move of 0.14%.