The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Cleaning, Household, Lifestyle, and International.
Take a look at the 1-year chart of Clorox (NYSE: CLX) below with my added notations:
Since the beginning of 2019, CLX has formed an important level of resistance to watch at the $160 (red) mark. The stock made its way back to the level again, just over a week ago, and once again fell back down. A close above that $160 level should lead to higher prices.
The Tale of the Tape: CLX has a key level of resistance at $160. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $160.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT