In a column last week, Jim Cramer reminded readers there was a bull market in Clorox (CLX) , whose wipes, charcoal and other household products will be in high demand for the foreseeable future. Let's check and see if the stock will be in high demand, too.
In this daily bar chart of CLX, below, we can see the strong rally from November. Prices have been bouncing off the rising 50-day moving average line, which has been acting as support. The slope of the 200-day moving average line has been positive since late February. The daily On-Balance-Volume (OBV) line turned more bullish from December and has made new highs this month to confirm the rally and support a bullish view on the stock. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero-line since December and just turned upwards to a fresh outright-buy signal.
In this weekly bar chart of CLX, below, we can see the price strength of CLX since it broke out on the upside from its sideways consolidation pattern in the $160-$150 area. A double in price from this breakout would not be unusual giving us a $300-$320 price target. Prices are above the rising 40-week moving average line. The weekly OBV line is very strong and at a new high telling us that buyers are aggressively supporting this advance. The MACD oscillator remains very bullish and pointed higher.
In this first Point and Figure chart of CLX, below, we used daily price data and can see a potential upside price target of $265.
In this weekly Point and Figure chart of CLX, below, we can see a possible upside price objective in the $348 area.
Bottom line strategy: Clorox doesn't sell software to the stay-at-home economy and it doesn't make chips nor steam movies, but nevertheless CLX is in a strong uptrend with higher price targets. Stay long, raise sell stops to a close below $205 as our target range from $265 to $348.