CLX stuck within tight trading range
Clorox Company (CLX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CLX ended the week -0.84% lower at 164.83 after gaining $0.06 (0.04%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 Feb 14, 2020):
Friday's trading range has been $0.80 (0.48%), that's far below the last trading month's daily average range of $2.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CLX. Prices continued to consolidate within a tight trading range between 162.68 and 165.13 where it has been caught now for the last three trading days.
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, one bearish candlestick pattern matches today's price action, the Hanging Man.
After having been unable to move above 165.13 in the previous session, Clorox ran into sellers again around the same price level today, failing to move higher than 164.99. The last time this happened on January 30th, CLX actually gained 0.93% on the following trading day.
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 165.13 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 162.68 where further sell stops might get triggered.
Among the seven 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 613 times, CLX closed higher 56.77% 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 60.03% with an average market move of 0.47%.