Red Flag Radar - Why Clorox May Not Be All Bleached Out
When technicals merge with fundamental concerns.
▶ Quick hit: While I haven’t written on Clorox $CLX in recent years it’s been on my personal radar for months...
Or at least since I saw comments from Paragon Intel’s MangementTrack on CEO Linda Rendle, which were off-the-baseline negative.
They’re off-the-baseline negative, and I’ve been meaning to share them – and will in a moment...
But the catalyst for why now is what I saw from my pal Steve Strazza at All Star Charts, who focuses on the technicals. In a report the other day on potential shorts based on the charts, he zeroed in on Clorox, with this chart...
He added...
Clorox is threatening to complete a massive, decade-long distribution pattern. Price is sitting right on key support at 120. If this level breaks, the path of least resistance points will be lower.
On a relative basis, CLX is trading at all-time lows versus the broader market. This persistent weakness only adds conviction to the bearish setup.
We want to short CLX on weakness below 120, targeting 78 over the next 2–4 month…