Will COLGATE-PALMOLIVE CO breakout?

COLGATE-PALMOLIVE CO (NYSE:CL) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:CL.

What is the technical picture of NYSE:CL telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 10 out of 10 to CL. Both in the recent history as in the last year, CL has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that CL is one of the better performing stocks in the market, outperforming 83% of all stocks. On top of that, CL also shows a nice and consistent pattern of rising prices.
• CL is one of the better performing stocks in the Household Products industry, it outperforms 90% of 12 stocks in the same industry.
• CL is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month CL has a been trading in a tight range between 95.02 and 99.63.

Check the latest full technical report of CL for a complete technical analysis.

How does the Setup look for NYSE:CL

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:CL has a 8 as its setup rating:

Besides having an excellent technical rating, CL also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 98.52. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 97.74, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CL in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:CL

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.