Rendle said Clorox remains in a good position with strong brands, but admitted the company is seeing inflationary pressures in both commodities and transportation. Clorox is responding with measured price increases and innovation to drive margin expansion.
When asked about what post-pandemic life might look like, Rendle said many of the behaviors we've learned over the past year will be lasting ones. People want control of their environments, and that means cleaning more with Clorox products at home and on the go.
Let's turn to the charts.
When we reviewed the charts of CLX on Feb. 5 we wrote that "Sometimes price moves can make your head spin. Bearish for months then bullish for days and now bearish again. CLX may not sink to $153 in the weeks ahead but the charts are bearish for now."
Let's check things two months on.
In the updated daily bar chart of CLX, below, we can see that the shares bounced for a few weeks from early March but have declined again in April. CLX is trading below both the declining 50-day moving average line as well as the bearish 200-day moving average line.
The On-Balance-Volume (OBV) line has been in a decline from late January and tells us that sellers of CLX have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has recently slipped below the zero line for an outright sell signal.
In the weekly bar chart of CLX, below, we can see that prices have been in a downtrend from the middle of 2020. Prices are trading below the declining 40-week moving average line.
The weekly OBV line has been slowly declining from August and the MACD oscillator is bearish as it has been below the zero line since January.
In this daily Point and Figure chart of CLX, below, we can see a potential downside price target of $161. A trade at $175.22 will be a new low for the move down on this chart and will refresh the downtrend.
In this weekly Point and Figure chart of CLX, below, we can see a target of $161 and that there should be chart support in that area.
Bottom-line strategy: The charts of CLX are bearish and we could see further declines to the $161 area in the weeks ahead. Avoid the long side for now.