CL closes within prior day's range after lackluster session
Colgate-Palmolive Company (CL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CL finished the week 2.61% higher at 70.75 after gaining $0.49 (0.7%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 70.75 marks the highest recorded closing price since April 28th. The bulls were in full control today, moving the market higher throughout the whole session. 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 22, 2020):
Friday's trading range has been $0.91 (1.3%), that's far below the last trading month's daily average range of $1.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CL. Prices continued to consolidate within a tight trading range between 69.14 and 71.01 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The stock managed to close back above the 100-day moving average at 70.30. When this moving average was crossed above the last time on Wednesday, CL actually lost -0.30% on the following trading day. After having been unable to move above 71.01 in the prior session, Colgate-Palmolive ran into sellers again around the same price level today, missing to move higher than 70.93.
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 71.01 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 69.14 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Colgate-Palmolive. Out of 741 times, CL closed higher 53.17% 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 60.19% with an average market move of 0.44%.