CL unable to break through key resistance level
Colgate-Palmolive Company (CL) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
CL finished Thursday at 73.28 gaining $0.25 (0.34%) on low volume, slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. 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 Jul 02, 2020):
Thursday's trading range has been $0.80 (1.09%), that's far below the last trading month's daily average range of $1.33. 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.
Unable to break through the key technical resistance level at 73.70 (R1), the share closed below it after spiking up to 73.87 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 72.97 in the previous session, Colgate-Palmolive found buyers again around the same price level today at 73.07. The last time this happened on June 26th, CL gained 1.27% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further buying could move prices higher should the market test June's close-by high at 75.40.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Colgate-Palmolive. Out of 553 times, CL closed higher 49.91% 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 56.60% with an average market move of 0.26%.