CLX closes above its opening price after recovering from early selling pressure
Clorox Company (CLX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CLX finished the week -3.17% lower at 144.84 after gaining $2.66 (1.87%) today, slightly outperforming the S&P 500 (1.42%). Trading up to $1.51 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 4th, CLX gained 2.05% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CLX as at Oct 12, 2018):
Friday's trading range has been $3.67 (2.56%), that's above the last trading month's daily average range of $2.72. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CLX.
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.
Buyers managed to take out the key technical resistance level at 144.16 (now S1), which is likely to act as support going forward. After having been unable to move lower than 141.53 in the prior session, The Clorox found buyers again around the same price level today at 142.00.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 149.46.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for The Clorox. Out of 58 times, CLX closed higher 58.62% 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 65.52% with an average market move of 0.89%.