Church & Dwight Co. (CHD) has been in an uptrend since April 2018, but what is really interesting is how it has performed in the past 12 months. Many of the stocks I watch and review declined in the fourth quarter of 2018, but not CHD, which is known for its famed Arm & Hammer brand. Let's take a look at the charts and indicators this morning.
In this daily bar chart of CHD, below, we can see that CHD traded sideways in the fourth quarter and like many stocks traded higher in 2019. Prices have recently crossed above and below the positively sloped 50-day moving average line.
The rising 200-day line has shown a positive slope the past 12-months. The On-Balance-Volume (OBV) line has been positive the past year and supports the price gains. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero-line for much of the year, but recently it has been hugging the zero-line.
In this weekly bar chart of CHD, below, we can see a long sideways consolidation pattern from late 2016 to the first quart of 2018. Prices broke out of the consolidation pattern to the upside and have stayed above the rising 40-week moving average line. The weekly OBV line shows a three-year rise, which is very bullish. The weekly MACD oscillator is narrowing towards a potential upside crossover and buy-signal.
In this Point and Figure chart of CHD, below, we can see a potential upside price target or objective of $84.75. A trade down at $72.27 is likely to weaken the chart and generate a downside price target.
Bottom line strategy: It looks like CHD will continue to be a "safe haven," while the broad market weakens. Existing longs should hold risking a close below $71. Add to longs or go long on a close above $78 with increased volume. $85 is our first price target.