Clean Up Your Portfolio with Clorox

• Posted by Greg Harmon
• on May 10th, 2016

Clean and simple can be a good thing, even for investing. Take a look at Clorox for example. This company makes bleach. That is it. Oh, it packages bleach in many ways but it makes bleach. Simple. Yet with one thing this company’s stock price is up 7290% since it debuted in August 1968.

It is making a new all-time high as I write this and with that it looks like a great opportunity to get involved, if you have missed the first 48 years. The chart below explains why. The 40 week SMA (same as 200 day SMA) has acted as support for the stock over the 6 year period shown. You can also see many periods of sideways price action followed by extended pushes higher.

The last touch at that 40 week SMA can just 3 weeks ago. It had followed a 6 month sideways consolidation in the stock. And today it is breaking that consolidation to the upside. Momentum is strong as well. The RSI is in the bullish zone and rising. It has also built a technical pattern, a Positive RSI Reversal, that gives a target to the upside of about $149. The MACD is about to cross up as well, giving its own buy signal. To top it off this stock sports a 2.36% dividend yield. Shouldn’t you consider it to help clean up your portfolio?

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Side note: Clorox contacted me to state that they make many other products –

-Kingsford Charcoal
– Glad
– Hidden Valley Ranch
– Fresh Step litter
– Brita
– Burt’s Bees

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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.

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