Clorox, Co. (CLX)
By Tue, Mar 10, 2020
Hey everyone,
Before we dive into our Chart of the Week, I want to take a quick second to address this crazy market.
Yes, we’re seeing some massive volatility here — in both directions.
But that doesn’t mean we can’t find some really great profit generating opportunities in front of us.
After all, shorts did really well for us in stocks.
And the bond market is ripping, which we couldn’t be more happy about.
So moving forward, we’re gonna stick with this defensive mindset and look at a trade that I’m feeling really good about, Clorox, Co (CLX).
It may seem like everything is red right now, but CLX is actually looking good to go long for a few reasons…
We’re looking at a great base here.
And really solid relative strength.
Plus, with global fears about Coronavirus spreading faster than COVID-19 itself, Clorox cleaning products are flying off the shelves.
Just look up Clorox hand sanitizer. It’s not even available on Amazon (go ahead, look it up).
So right now, we’re looking at BUYING Clorox above 167.
Any lower than that, we want no part of it.
But if CLX is above 167, we want it with a price target of 190.
That’s a really solid opportunity for us with extremely limited risk.
So let’s clean up with CLX and stay on the defensive.
Til next week,
JC Parets
About the Author
JC Parets, founder of All Star Charts, specializes in finding the most opportunistic risk vs. reward propositions while at the same time bringing a top/down approach to the marketplace whose wide spectrum is rivaled by few. JC begins with a long-term global macro perspective and then works his way down to the individual sector and industry level before ultimately isolating the stocks that best portray a particular thesis. Price is the most important technical indicator, but JC uses supplements such as Momentum, Relative Strength, and Fibonacci analysis to complete the process.
