The Next Large Cap Stock You Need to Own: Colgate-Palmolive

• Posted by Greg Harmon
• on December 9th, 2013

Colgate-Palmolive is a $60 billion company. But no company that big can be a prepping for a breakout right? Well except Google and ExxonMobile and Apple. But Google does not have a good dividend. What about those with a dividend over 2%? Oh yeah both ExxonMobil and Apple have dividends in that range. Maybe it can breakout. Take a look at the daily chart.

It is a very simple set up. The stock has just moved out of a symmetrical triangle and stopped just below the target from the breakout. It made a 10% move in less than 3 weeks. Now it is consolidating that move in a box between 64 and 66.50. The target on a break of the box higher is to 72. The RSI is moving back higher after a pullback to the mid 40’s, remaining bullish, and the MACD is starting to turn back higher. All of the Simple Moving Averages are moving higher and underneath the price and the Bollinger bands are getting tight. Are you ready for a break higher? Since it has a steady and long dividend history you can tell it will declare one around January 10th for ex-date January 20th or later. This will be beyond the January Options Expiration. You can Use January options to play this move when it happens, and limit your capital exposed. For some the January 67.50 Calls, at 52 cents, may be cheap enough that you do not even have to wait for a breakout.

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