Household consumer products name Church & Dwight (CHD) is scheduled to report its latest quarterly numbers on Friday. The stock has been correcting lower since August. The question today is whether the pullback is over and whether traders should become buyers? For the answer, let's check out a few charts.
In the daily bar chart of CHD, below, we can see that the shares peaked in August/early September and turned lower. Buying interest has developed the past three months around the $85 area with prices successfully testing the rising 200-day moving average line this month. CHD is now above the bottoming 50-day moving average line.
The On-Balance-Volume (OBV) line weakened from August to November but has since improved suggesting a return of more aggressive buying by traders. The Moving Average Convergence Divergence (MACD) oscillator made a higher low in January than November and is poised to soon cross the zero line for an outright buy signal.