CL gains $0.33 (0.43%) after posting strong earnings
Colgate-Palmolive Company (CL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, CL ended the month 5.38% higher at 77.20 after gaining $0.33 (0.43%) today, slightly underperforming the S&P 500 (0.77%) following today's earnings report. Today's close at 77.20 marks the highest recorded closing price since February 10th. Trading up to $0.80 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 77.19, the market confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (CL as at Jul 31, 2020):
CL reported earnings of $0.74 per share before today's market open. With analysts having expected an EPS of $0.71, Colgate-Palmolive Company surpassed market expectations by 4.2%. The company's last earnings report was released on May 1, 2020, when Colgate-Palmolive Company reported earnings of $0.75 per share beating market expectations by 2.7%.
Friday's trading range has been $1.64 (2.14%), that's far above the last trading month's daily average range of $1.15. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CL.
After having been unable to move lower than 75.72 in the prior session, the stock found buyers again around the same price level today at 75.81. The last time this happened on Monday, CL gained 1.42% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 74.68.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to 2018's high at 77.91 we could see further upside momentum if potential buy stops at the level get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Colgate-Palmolive. Out of 1 times, CL closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -0.43%.