During March, CL stock price formed support at $71.30 to kick off a bullish rally in hopes of recovering from the losses. As 2023 started, the stock price declined from $80 to $73 in January. In February, CL stock price entered into a consolidation zone ranging between $75 and $71.
The bullish rally of March helped price in recovering losses and creation of annual high at $81.29. A drop was triggered as soon as the price reached $82 level. CL stock price formed support at $74.20 after the drop and is currently gaining bullish momentum for retesting the annual high.
Currently, the stock price received a rejection from $78.33 and the previous candle has closed a strong bearish candle. If bearish momentum continues, there is a high probability for the price to head toward the $75 level. CL stock price needs to form support for rising above $78.33.
While Amazon Inc. (NASDAQ: AMZN) is trading at $129.33 with a drop of 0.63%.
Earning Report Analysis Of Colgate-Palmolive
Colgate-Palmolive reported first-quarter results which were strong. Consensus estimated the earning per share to be 0.70 but it turned out to be 0.73, better than expected. Revenue rose 8.5% Y-O-Y to $4.8 Billion. Net income was lower than the previous year’s first quarter by $187 million. Management has raised its full-year outlook, stating that it now expects a sales growth of 4% to 6% in comparison to the 3% to 5% previously.
As the economic recession is looming, investors might show interest in buying consumer stocks like Colgate-Palmolive. The next earning report is to be released on 28 July with revenue estimates of $4.697 Billion and $0.744.
Will CL Stock Price Retest Annual High?
The stock price is still above 20,50,100 and 200-day EMA but the concern is regarding the current direction of price as it might cross all the major EMAs negatively. Chaikin money flow score is -0.19 suggesting weakness in the market. CMF has been below the 0 mark since the start of June.
The relative strength index has started to dip and is currently at 50.91 hovering in the neutral zone. RSI indicates the possibility of consolidation in the current region if the price can form support. CL stock price reached the upper band of bollinger and price entered into the corrective phase. The stock price is headed toward the lower band which resides near the support of $74.30.
Conclusion
The market structure and price action of Colgate-Palmolive is slowly turning bearish as the previous candle received a strong rejection from $78.33. CL stock price needs to form support and rise above $80 for retesting the annual high.
Technical levels
Major support: $71.30 and $74.30
Major resistance:$80 and $82
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/26/colgate-palmolive-cl-stock-recession-proof-investment/