Colgate Palmolive (NYSE: CL) stock price slid down by 1.39% in the current month. It seems to be spending time within a narrow range consolidation zone for base formation.
Colgate stock price slipped below the 200 day and 50 day EMAs. However, it did not collapse much and continued trading within the range. The 200 day EMA is sloping sideways indicating that prices lack direction, because of which further consolidation is possible.
The CL stock price faced rejection and began correction. In mid-August, the CL stock price broke down the crucial support level of $74.00, which invited further decline. Previously, the stock had taken a support near the $70.00 to $72.00 range multiple times. Consequently, investors are expecting the repetition of a similar kind of pattern.
The price behavior of the stock is quite stable so the possibility of a sharp upside or downside remains low. The Colgate stock price pattern is mildly bearish but the price is near the demand zone so the risk of a downside is low. Colgate Palmolive stock price closed the previous session at $72.45 with an intraday decline of -1.05%. The market capitalization stands at $59.89 Billion.
Will the CL Stock Price Be Able to Defend $70?
CL stock is in a short-term correction phase. It is near the crucial support and sellers are trying their best to push the prices further down.
However, as long as the Colgate stock price sustains above $70.00, the price is expected to bounce back again. Consequently, investors must look for opportunities to accumulate CL shares at a cheaper price.
The price will gain positive momentum when buyers are able to break through the $74.00 hurdle. On the other hand, if sellers take control and drag the prices below $70.00, then a downward move can be expected.
Colgate Stock Price Needs Fresh Buying
Colgate stock price needs fresh buying for a reversal to the upside. At present, the buyers look reluctant and so the consolidation is likely to continue.
In the past few sessions, the broader market indices showed a minor decline. Due to this, CL stock was negatively impacted. However, it will be interesting to see how prices react near the support which will decide the future direction of the stock.
Conclusion
The CL stock price is down by 1.39% in September 2023. However, the price is currently near the demand zone so the risk of a downside is low. The analysis suggests that the Colgate stock price might reverse upward and repeat history once again.
Technical levels
- Resistance levels: $75.00 and $78.00
- Support levels: $71.00 and $68.00
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.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/25/colgate-stock-will-cl-stock-reverse-again-and-repeat-history/