Promising Signs: COLGATE-PALMOLIVE CO Setting the Stage for a Breakout.

Our stock screener has flagged COLGATE-PALMOLIVE CO (NYSE:CL) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:CL for potential movement.

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.

Overall CL gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, CL is only an average performer.

• The long and short term trends are both positive. This is looking good!
• 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.
• When comparing the yearly performance of all stocks, we notice that CL is one of the better performing stocks in the market, outperforming 71% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• CL is part of the Household Products industry. There are 12 other stocks in this industry, CL did better than 63% of them.
• In the last month CL has a been trading in a tight range between 77.98 and 81.82.

Our latest full technical report of CL contains the most current technical analsysis.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:CL exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

CL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 81.98. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 81.26, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:CL be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.