Colgate-Palmolive Had a 18 Year Uptrend Last Time it Moved
- Posted by Greg Harmon
- on August 1st, 2013
Colgate-Palmolive, $CL, is not an exciting company, but they are ingrained in your life. From the toothpaste and deodorant to cleaning supplies and even pet food, you cannot avoid them. It is companies like these that are great candidates for a long term trade, but often they just do not give you the pullback to create an entry. This happened in Colgate-Palmolive recently. But don’t worry if you missed it. There are still reasons to get on board. The weekly chart below shows the move from September 2010 higher was retraced 23.6% before it started back higher. You may also notice that the consolidation
in the last half of 2012 to the top was also retraced 61.8% (23.6/38.2=61.8). The move higher then started with good Fibonacci support. It also has support for more upside from a rising MACD and a bullish and rising RSI. If you now focus in on the most recent price action, you can see that it is playing out a bearish Shark Harmonic Pattern. This completes at either 61.64 or 63.05. Both give some upside or a spot to watch for the next pullback to enter. There is also the horizontal resistance at 61.70 which can be used as a trigger. Why do you need to be in it after an already 8 year uptrend? The last time this stock trended it was in an uptrend from 1982 until 2000, or 18 years and rose 10,000% over that time. It may still have 10 years to go!
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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