CLX closes higher for the 3rd day in a row
Clorox Company (CLX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CLX ended the month 7.81% higher at 236.51 after surging $5.25 (2.27%) today on high volume, significantly outperforming the S&P 500 (0.77%) ahead of Monday's earnings report. This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on July 14th, CLX actually lost -2.18% on the following trading day. Today's close at 236.51 marks the highest recorded closing price ever.
Daily Candlestick Chart (CLX as at Jul 31, 2020):
CLX is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $2.01 per share. The company's last earnings report was released on May 1, 2020, when Clorox Company reported earnings of $1.89 per share surpassing market expectations by 9.2%.
Friday's trading range has been $4.96 (2.13%), that's above the last trading month's daily average range of $3.94. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CLX.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since July 9th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 228.08 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Clorox. Out of 31 times, CLX closed higher 61.29% 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 70.97% with an average market move of 1.71%.