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Colgate-Palmolive Company (CL)

CL stock forecast: buy or sell

Close on Oct 23rd, 2020
$79.34 +0.06%
3 months performance
6.50%
Published: October 24th, 2020 - 4.33pm EDT

CL stock outlook

  • Colgate-Palmolive stock just moved 0.06% to close at $79.34 on the stock market yesterday.
  • On Wednesday broke out above its latest top at $79.66
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $57.48. This uptrend marked a 38.03% gain
  • On October 16 broke out above its latest top at $79.66
  • Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide.

Important note:
The comments given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the particular scenarios of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for learning purposes only

CL stock charts

Should I buy Colgate-Palmolive stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $CL stock a buy?

Currently, Colgate-Palmolive stock matches 2 trading strategies:

Uptrend buy setup

Colgate-Palmolive stock is in an uptrend since last March that so far has marked a gorgeous 38% gain. Price marked a local bottom in this uptrend at $73.94 in mid-September, and since then it bounced off a 7.3%. Now, it's just 0.4% away from breaking out over its last top and resume the uptrend. The new entry point is therefore at $79.66. If you decide to enter this trade, the suggested stop loss is at $71.72

Buy setupBuy pointStop lossRisk
Uptrend buy setup$79.66$71.729.97%

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that shares price doesn't struggle with upper resistances, and usually it rises quickly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Colgate-Palmolive can break to ATH any time soon, as it only needs to rise a 1.53%. The buy point is at $80.55 if you want to trade with this strategy. The stop loss would be ordered at $72.50

Buy setupBuy pointStop lossRisk
ATH buy setup$80.55$72.5010%

Should I sell Colgate-Palmolive stock?

Do you know when is it time to sell Colgate-Palmolive stock?. Trading strategies help us to avoid impulsive decisions based on our personal moods or the buzz that surrounds the market. When selling, as well as buying, detailed setups are very simple to use and are only valid for selling shares in your porfolio, not for selling short Colgate-Palmolive stock

As a rule of thumb, you should never keep a trade that generates losses greater than those expected by the time of purchase. The timing to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Colgate-Palmolive stock?

Currently, Colgate-Palmolive stock doesn't match any of our preferred sell setups, so if you own Colgate-Palmolive shares and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Colgate-Palmolive stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month we couldn't find any rating for Colgate-Palmolive

Technical analysis

Since last March, Colgate-Palmolive has been printing an uptrend that by now marked an amazing 38.03%. The price shows higher peaks and higher lows, and along the way provided some buying opportunities for those who wanted to enter. Latest low was in mid-September, when price bounced at $73.94. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $79.66 and $73.94

SMAs overview

Moving averages are indicators for traders to measure direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

CL SMAs chart

Supports and resistances

Traders use supports and resistances to identify price points in the stock price action that tend to work as obstacles, preventing the price of a stock to move in certain direction. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue declining until meeting another support level. On the other side, resistances are where the price tends to find resistance as it rises. Again, this means that the price is more likely to "rebound" at this level, and if it finally breaks this level, the price will rally more easily until it finds the next resistance

The current resistances are:

  • R1: $79.66 (0.4% above)
  • The current support levels are:

  • S1: $76.07 (-4.12% below)
  • S2: $74.55 (-6.04% below)
  • S3: $74.17 (-6.52% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It comprises 3 lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on October 13, the price dropped by 1.5%. The price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks

    CL RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in late August after just crossing to the overbough zone for 1 day (weak signal). The RSI value yesterday was 57.58. Since then, Colgate-Palmolive shares slightly moved a 0.52%

    CL RSI chart

    Earnings and financials

    In late July, Colgate-Palmolive ($CL) had the financial event and released the FQ2 report. CL reported fiscal 2nd-quarter earnings of $0.74 per share versus market estimate that was $0.70.

    This compares to earnings of $0.72 per share same quarter last year, so posted EPS is an increase of 2.78%.

    CL ($CL) will host the earnings call on Friday next week. Wall Street forecasts a per-share earnings of $-0.08, compared to Q2 that was $0.74.

    CL revenues and profits chart