Colgate-Palmolive shares look ready to extend rally
CL•Colgate-Palmolive shares have gained more than 13% in about three weeks and broke above a bull pennant pattern, reaching $95.33 last week. The chart points to potential targets of $106 and possibly $109, with resistance near $100 and support at $88 to $90.
1. Bull pennant breakout
Colgate-Palmolive shares have gained more than 13% over about three weeks. Last week, they broke above a bull pennant pattern and reached $95.33, their highest level in about 2-1/2 months.
2. Potential levels
Measuring the flagpole height points to a potential target of $106 and possibly as high as $109. The shares could encounter resistance near $100; a retreat below support in the $88 to $90 area would probably end the rally for now.
3. Momentum indicators
Bollinger Bands, MACD and RSI all suggest Colgate is gaining upward momentum.
