On Feb. 23, 2019 (US$159.56) we identified a bullish “W” formation (dashed lines), provided targets of US$175 and US$190 and on March 23, 2020 (US$173.34) we confirmed higher targets of US$200 and US$220. Clorox Co. (Friday’s close US$207.25) reached a high of US$239.87 last August to fulfill and exceed our most recent targets (A). The stock became extremely overbought at that time and began a minor correction to provide another good entry level (B). There is good support at US$200-US$205; only a sustained decline below this level would be negative. A rise above US$225 would signal the resumption of the up-trend. Behaviour indicators including the rising trend-line (solid line) and the rising 40-week Moving Average (40wMA) confirm the bullish status. Point & Figure measurements provide targets of US$260 and US$280. Higher targets are visible.
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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
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