Coronavirus stock that may not attract the same attention as those scrambling to find a vaccine.
CLOROX provides prevention rather than cure.
A breakout of long term congestion phase could provide a nice trade opportunity
After a strong move off of the 145 level once again, CLX has taken back buyer's interest. According to my model, a buy before earnings is risky but warranted. I will be buying at the open and will add if price touches the rising TL and/or if it breaks the 168 level with a long term target on the chart as shown! What might people need more of in the coming weeks...
Weekly analysis:
- Breakout at around 160 did not had any consolidation period. Notice the first breakout at 153.5 had some consolidation before. The second breakout at around 160 had long wicks and only took 2 weekly candles
- Stock is likely tired from the accelerated breakout attempt with almost no consolisation.
- Inverted hammer forming at resistance...
CLX is consolidating in a rising triangle pattern
if price will break above and closes 153.5 stock will probably attack last highs at 163.5
then could go even higher
158 area is acting as resistance
rising trendline if far away so stop at last low
It seems like it is time for CLX to pull back as the EMA (12) has dropped below the SMA (50) which is indicative of a short trend that is below its long term trend.
CLX over reaching here. Watch for pull back at least to the 382 or 618. Traders will lighten up on defensive stock if the market get a relief rally in the next days.
Bearish Break for Clorox occurred in early February 2018. On the chart you can see 4 horizontal lines. Notice that the Yellow and the Red Lines can be used as a good place to short, since Clorox is in a bear market currently.
These custom support resistance indicator lines show decent places to enter or exit.
The Blue indicator line serves as a Bullish Trend...
Giving this one a shot even though I do not like the look of the 3M candle, we still have two months for that to close, could react well from MN Demand with Trend line and 20 EMA confluence.
