CLX falls to lowest close since May 1st
Clorox Company (CLX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CLX finished the week -5.36% lower at 198.59 after edging lower $0.81 (-0.41%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 198.59 marks the lowest recorded closing price since May 1st. Trading $1.30 higher after the open, Clorox was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CLX as at May 22, 2020):
Friday's trading range has been $2.59 (1.3%), that's far below the last trading month's daily average range of $4.75. 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.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on April 16th, CLX lost -1.52% on the following trading day.
The stock closed below the 20-day moving average at 199.49 for the first time since April 30th. After having been unable to move lower than 198.17 in the previous session, the share found buyers again around the same price level today at 197.69.
Although the market 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 OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Clorox. Out of 216 times, CLX closed higher 61.11% 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 60.19% with an average market move of 0.62%.