On Feb. 23, 2019, (US$159.58) we identified a breakout from a large, bullish “W” formation (dashed lines), provided targets of US$175 and US$190 and suggested support at US$145-150.
Following our report, Clorox Co. (Friday’s close US$173.34) remained in a large horizontal trading range mostly between US$145 and US$167 (dotted lines), but then had a breakout from this range and reached a high of US$214.26 (A).
It is currently in the midst of a minor correction toward its 40-week Moving Average (40wMA – B) and provides an excellent entry level. Only a sustained decline below ±US$155 would be negative.
Point & Figure measurements provide targets of US$200 and US$220. The large trading range (dotted lines) and “W” pattern (dashed lines) support higher targets.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com