CLX shares recently suffered a 5.8% pullback starting 12/19/12 and bottomed out 12/31/12. Historically speaking, CLX suffered a similar short-term move from 6/21/10 to 7/6/10. In both cases, CLX rebounded quickly after the dive. The next supposed move is horizontal consolidation for a few bars before moving back up to the top of the channel; as the CLX chart below displays with various annotations and highlights.
In both cases, CLX has/had its compilation of moving averages below it and moving with a positive slope. Additionally, in each case, the aforementioned bottom was found when the equity came close to the 200 day moving average and bottom of the channel. The parallels in the chart are very interesting, however one does not even have to believe that the two instances will mirror each other perfectly. The bottom line is that CLX is in a powerful channel that it has historically respected and traded along with and considering the massive moving average support below us, a test of the upper bound may be in order.
Fundamentally, CLX recently announced that they will hold a webcast discussion disclosing their second-quarter, fiscal year 2013 results on Monday February 4th 2013 at 1:30pm ET.
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Author salernoma@mx.lakeforest.edu
