Colgate-Palmolive Had a 18 Year Uptrend Last Time it Moved

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

cl wk fib

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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