You might be wondering if Colgate Palmolive is preparing for a strong move higher. The weekly charts show that the stock has reached its Elliot Wave targets (a 3-wave correction that also complies with some Fibonacci projections). The daily charts show higher bottoms, and a period of consolidation with the stock tantalizingly poised near the upper boundary. Let me start by saying that typically, a strong break above the upper boundary in the attached chart should be quite positive for the stock. However, given the fact that the weekly indicators are still negative, there is a chance that such a break will fail to be sustained, and we could see it fall back, perhaps for one last time this season, and just when those who bought the stock on the break above the line now throw in the towel, we will turn around and race higher! (I am not trying to be dramatic, or even prophesize here. I have watched such action over and over again so many times in my career that you better be forewarned of the possibility). Anyway, take a look at the two charts below and you can decide your course of action. I personally will wait to see if we get that final move down before buying.
6 Comments
Thank you for the heads up.
Looks like the new low u were waiting for maybe in as predicted Mr Ramki
Thanks Indy for drawing my attention to this set up. I was too busy at office to notice the developments on this stock. Ramki
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The hourly chart shows impulsive up move probably 3rd complete-waiitng for 5 up then 3 down to 50% retrace for low risk entry
looks like 5 up on hourly chart
now waiting for drop to 6025-6116 area