The Clorox Co. ( CLX) was up sharply in trading Tuesday as they beat expectations on EPS and revenue. Is this the start of a sustained rally or just a "flash in the pan" for the consumer goods company? 
On November 1 we wrote that "CLX has been in a long downtrend but we have pointed out that the pace of the decline has slowed and a hammer pattern is visible on the weekly candlestick chart and downside price targets have been reached. Traders should not be short CLX ahead of earnings and aggressive traders could 'nimble on the long side' with the understanding that I have no special knowledge of the upcoming numbers."
CLX rallied to the middle of January and then turned lower. Let's check on the charts again.
In this daily bar chart of CLX, below, we can see that prices gapped lower in early February and a tradeable low in mid-March. CLX has recovered to trade above the now rising 50-day moving average line. Prices are still below the declining 200-day moving average line.
The On-Balance-Volume (OBV) line has improved from the middle of March but trading volume has not increased. The Moving Average Convergence Divergence (MACD) oscillator is weak looking and headed back down towards the zero line.
In this weekly Japanese candlestick chart of CLX, below, we can see that prices have been weak. The slope of the 40-week moving average line is negative. The weekly OBV line is weak and the MACD oscillator is below the zero line.
In this daily Point and Figure chart of CLX, below, we can see a potential upside price target in the $179 area.
In this weekly Point and Figure chart of CLX, below, we can see a $200 price objective.
Bottom line strategy: Nimble traders could do some buying of CLX for a trade back to the $165 area. Risk to $135. Investors should continue to sit on the sidelines for now.
