CLX closes within prior day's range after lackluster session
Clorox Company (CLX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
CLX finished the week -1.9% lower at 162.47 after losing $1.29 (-0.79%) today, but still significantly outperforming the S&P 500 (-2.33%) following today's NFP report. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CLX as at Dec 07, 2018):
Friday's trading range has been $2.11 (1.29%), that's below the last trading month's daily average range of $2.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for CLX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on October 11th, CLX gained 1.87% on the following trading day.
Prices are trading close to the key technical support level at 161.70 (S1). After having been unable to move above 164.03 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 163.91.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 160.82 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Clorox. Out of 612 times, CLX closed higher 56.70% 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 60.29% with an average market move of 0.45%.