4 Trade Ideas for Colgate-Palmolive: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Colgate-Palmolive, $CL, comes into the week breaking short term resistance. It just filled a gap from August 2022 as it moves higher. The longer look shows a bearish Butterfly Harmonic pattern playing out, but with a Potential Reversal Zone up at 88.13. The Measured Move in the short term gives a target to 85 along the way. The RSI is bullish and moving up in overbought territory while the MACD is positive. The Bollinger Bands® are open higher as well.

There is resistance at 82.20 and 83.25 then 85.25 and 86.30. There is no resistance above 86.30. Support lower sits at 81.60 and 80.30 then 79.50. Short interest is low at 1.5%. The stock pays a dividend with an annual yield of 2.34% and has traded ex-dividend since April 20th. The company is expected to report earnings next on July 27th.

The May options chain shows the biggest open interest at the 60 put strike and from 77.50 to 85 on the call side. The June chain is lighter with biggest open interest from 80 to 75 on the put side and from 80 to 82.50 on the call side. The August chain show open interest spread from 80 top 65 on the put side and spikes at 75 and 85 on the call side.

Colgate-Palmolive, Ticker: $CL

Trade Idea 1: Buy the stock on a move over 82.25 with a stop at 79.50.

Trade Idea 2: Buy the stock on a move over 82.25 and add a June 80/75 Put Spread (55 cents) while selling the August 90 Call (40 cents).

Trade Idea 3: Buy the June/August 85 Call Calendar ($1.50) while selling the August 75 Put (85 cents).

Trade Idea 4: Buy the August 75/82.50/85 Call Spread Risk Reversal (55 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the May options expiration week, saw equity markets stalled and chopped around in narrow ranges.

Elsewhere look for Gold to consolidate in the uptrend while Crude Oil consolidates in a broad range. The US Dollar Index continues in consolidation with perhaps a drift to the upside while US Treasuries consolidate in the bounce. The Shanghai Composite looks to continue in consolidation as well while Emerging Markets consolidate too.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts are mixed though with the SPY in consolidation at the February high on both timeframes while the IWM consolidates just over support. The QQQ, however, looks strong on both timeframes chugging higher. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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