Swing Trade Idea (CL) – November 16, 2023
Our bearish trade for Thursday, November 16th is Colgate-Palmolive Co. (CL). CL is part of the Consumer Staples Sector, which has performed at 3.94% over the last month, with CL overperforming at 4.70% over the same period.
CL bounced higher and traded into a long-term area of resistance at $77. It is currently in an over-bought condition and has signaled a bearish diversion, indicating that a pullback can be expected over the duration of this trade.
As a close, if CL were to trade above $77 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $0.45.