Clorox - CLXNice bullish engulfing pattern today. w/ above average volume...watching for a move over $148 to fill the GAP
CXX trade ideas
Hoping to clean up on CLX, will be watching Monday/ TuesdayCLX reported earnings on Thursday after the close and disappointed on input costs which ultimately means Clorox will be raising prices to adjust their margins. The stock is highly oversold, but not a buy- YET. I will be watching Monday and Tuesday to see if it holds support for a trade.
Buy $CLX - NRPicks 21 MarThe Clorox Company manufactures and markets consumer products and professionals worldwide. It operates through four segments: Health and Welfare, Home, Lifestyle and International.
For the past year, Clorox has been in the right market segment of the consumer industry at the right time: cleaning and disinfection products. In his latest earnings report he exceeded expectations with earnings per share of $2.03 and quarterly revenue of $1.84B
Clorox's economic benefit has been trending higher over time, from about 10% a decade to 20% recently, implying that it becomes more effective in managing capital as it grows
- Defensive
- Dividend Yield 2.39%
- Market Cap 23.20B
- Sales Q/Q 27.10%
Technical:
- Low levels of RSI
- Support $181
- Bounce in MA 100
$CLXLong $StocksClorox has Covid new variant as a catalyst. Has fallen the past two earnings.
Inverse H&S (Head and shoulders ) on the Daily.
Has not closed back below support.
Entry : Here $174.00
S/L : $170-$172
TP 1 $178
TP 2 $182
TP 3 $185
TP 4 $190
TP 5 Open
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Happy Trading Week
$CLX long-term buy! (4/5)Conviction: 4/5
Entry is not idea, could have better entry point if price goes down to retest support.
Main thesis
Bounced off long-term (1991) channel bottom in December
Bounced off 50M-MAas well
RSI-M also bounced off historical lows, although not levels with highest certainty
Confirmed breakthrough from downward resistance line last week
Touching lower bound of channel (2016)
Misc Info
P/S level of 3ish is high relative to historical levels, however much lower than some other tech companies...
P/S level of 3 is about the same as S&P 500
Healthcare ( AMEX:XLV ) looks good compared to AMEX:SPY , could carry this up as well
Potential Risks
RSI-W is heating up, although does not preclude from uptrend in medium term (about a year)
Just broke through (with confirmed close) last week from downtrend resistance line
Quick ratio is deteriorating from mid 2021
General markets are very expensive, and we all know correlation goes to 1 in selloff.
Revenue growth is negative ... likely as people become less sensitive to COVID?
CLXOn the EMA chart 100,200,500,1000,2000
A very interesting situation, if it breaks out and holds the level, it may start to grow up. Despite the fact that we have already reached a significant correction to a strong level of 0.618 / 0.786 (according to various fibo reports), there is some divergence on the RSI. If the price breaks and holds 169 it might be interesting.
At the same time, the picture is fundamentally different and the decline should continue. P / E = 48, it is super expensive, despite the fact that earlier it did not exceed 28, in fact it is 2 times overvalued. On the positive side for investors, Clorox will raise prices for a wider range of products than originally planned. The negative and the potential for decline is still displayed not only in the P / E estimate, but also a simple thing - the covid leaves and the need for detergents decreases, which is already shown in the report, which noted a drop in sales on an annualized basis. At the moment, there is pressure on the margin.
An interesting two-year stack - comparing the results of the financial quarter of the 1st quarter of 2022 with the results of the financial quarter of the 1st quarter of 2020 in the second half of the pre-pandemic calendar of 2019 - shows a growth in revenue of 20.6%.
It is interesting in any case how the paper will behave, whether there will be a technical rebound.
CLX looking bullish going into earningsCLX looking great. There is a falling wedge breakout on the weekly. The contracts are very cheap and this stock is going to be great to day trade. The daily chart looks great as well with lots of buy signals. Waiting for a break above 187.39. If breaks above there then taking a longer position with a PT of 189.28.
If breaks above 189.28 then we can see 192, 193, 194, 196. We also have earnings coming up in about 2-3 weeks.
CLX, I smell bleach in the streets CLX from the weekly chart.
CLX has been primarily trending up since the early 80’s. Near the end of Nov 2019 the 130 EMA was tested, and a rally was generated that broke the consolidations resistance line at that time. Stock prices soared around 65% in under a years’ time. Price has now fallen around 37%. I feel the price will retest the support line and enter an accumulation phase.
My RSI and MACD-H are in completely oversold zone with the stochastic showing downward momentum. One thing I would like to note on the weekly is where the MACD-H lines are currently at. They have never been more oversold in the history of the stock.
If the support line holds around $166.00, I will look for swing trades on the daily. If the price holds above the 130 on the weekly, I will increase position sizes.
