CLX breaks back above 50-day moving average
Clorox Company (CLX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CLX ended Thursday at 173.11 gaining $7.45 (4.5%), notably underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 170.48, the market confirmed its breakout through the previous session high after trading up to $4.52 above it intraday.
Daily Candlestick Chart (CLX as at Mar 26, 2020):
Thursday's trading range has been $7.98 (4.75%), that's below the last trading month's daily average range of $12.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CLX. Prices continued to consolidate within a tight trading range between 161.11 and 175.69 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 50-day moving average at 166.82. When this moving average was crossed above the last time on March 13th, CLX gained 4.12% on the following trading day. After spiking up to 175.00 during the day, the stock found resistance at the 20-day moving average at 173.83.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Clorox. Out of 52 times, CLX closed higher 53.85% 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 57.69% with an average market move of 0.18%.