Leading consumer goods stock, Clorox Co (CLX), has been in a downtrend for several months now. The stock topped out on August 5th, 2020 at $239.87 a share. Since that pivot top, the stock price has declined down to the $195.00 level. Traders should note that Clorox Co (CLX) stock is now trading below its important 50 and 200-day moving averages. This puts the stock in a weak technical position and signals further downside for the shares.
The next major support area for Clorox Co (CLX) stock will be around the $185.00 level. This key support area is where the stock broke out late April 2020. Often, prior breakout levels will serve as excellent support when tested. This support area is also near a major retrace level which should add even more solid support to the level. I will be looking at a long side trade in Clorox Co (CLX) stock when this major support area is tested.
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