Kimberly-Clark Is Ready to Resume Its Long-Term Uptrend

 | Feb 10, 2017 | 8:51 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

kmb

Kimberly-Clark (KMB) made a four-month correction last year that challenged its long-term uptrend from the 2009 nadir, but it is now ready to move higher with stronger volume and bullish technical indicators.

In this 10-year weekly chart of KMB, below, you can see the major uptrend from the 2009 bottom. Like physics 101, a trend in motion tends to remain in motion. Let's take a closer look at the decline last year.

In this one-year daily bar chart of KMB, below, you can see a double-top formation around $138 with highs in April and early July. The downtrend got in full gear over the summer months with the low reached in November. Can you see how the volume of trading became heavier from late October?

Now look at the On-Balance-Volume (OBV) line which based in November and December and turned up strongly in January. KMB responded on the upside last month by closing above the 50-day moving average line and making a breakaway gap with strong volume. KMB closed on the declining 200-day moving average line yesterday.

The trend-following Moving Average Convergence Divergence (MACD) oscillator in the lower panel gave a cover shorts buy signal in early November and crossed the zero line last month for an outright go long signal.

In this three-year weekly chart of KMB, below, we can see that prices have rallied back to the 40-week moving average line. KMB could close above the line today. We'll see.

The OBV line on a weekly timeframe has been rising the past three months and confirms the price advance. The weekly MACD oscillator gave a cover shorts buy signal last month.

Bottom line: KMB looks good on several timeframes. Look to buy KMB near $122 if possible or on a close above $126. I would not want to see KMB close below $119.

Columnist Conversations

join me today for a free webinar, we'll be talking about the markets, interest rates and the Fed.  after ...
we have a big winner here, we'll roll it up SOLD XLNX MAY 55 CALL AT 9.55 (in at 5.70) BOUGHT XLNX JUN 6...
View Chart »  View in New Window » XLY has met multiple upside targets, you may want to trail ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.