CLX finds buyers at key support level
Clorox Company (CLX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CLX ended the week 0.19% higher at 153.35 after gaining $0.24 (0.16%) today, slightly outperforming the S&P 500 (-0.01%). Trading $0.86 higher after the open, Clorox was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CLX as at Jan 11, 2019):
Friday's trading range has been $2.38 (1.55%), that's below the last trading month's daily average range of $4.39. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CLX.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 152.18 earlier during the day, the market bounced off the key technical support level at 152.95 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on December 21, 2018, CLX actually lost -5.92% on the following trading day. After spiking up to 154.56 during the day, the share found resistance at the 20-day moving average at 154.05.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 155.76 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Clorox. Out of 454 times, CLX closed higher 56.61% 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 61.67% with an average market move of 0.69%.