Skip to main content
Publish date:

Clorox Stock Chart: A Clean Trade on Earnings?

Clorox shares are rallying on Tuesday after reporting earnings. Can it reclaim this clear breakout level?

Clorox  (CLX) - Get Clorox Company Report may be known more for its 2.8% dividend yield than its aggressive stock charts.

However, the stock became a go-to play during the COVID-19 pandemic, as it was clear that demand for cleaning products would be through the roof from consumers and businesses alike.

While that helped jolt the stock into a major breakout over multi-year resistance, we’ve since seen Clorox stock fall the high it made in August 2020.

At the recent low in October, shares were down about 35% from the highs and were below the major breakout from the pre-COVID outbreak.

Although most investors expected Clorox stock to eventually stop trading like a high-growth tech stock, not many were looking for it to give up all of its COVID-related gains.

Now trading higher by about 2.5% on Tuesday following better-than-expected earnings, investors want to know if this is one they can own again.

Let’s look at the chart to see how the technicals are aligning.

Trading Clorox Stock

Weekly chart of Clorox stock.

Weekly chart of Clorox stock.

TheStreet Recommends

A weekly chart shows how vital the $166 to $167.50 area had been for Clorox leading up to the coronavirus pandemic.

This zone was significant resistance from 2018 and even provided the stock a fair amount of trouble once COVID was clearly a global pandemic. The breakout sent shares above $200 and to a high near $240 before retreating.

With Tuesday’s post-earnings rally, shares are reclaiming this key breakout area now.

However, it comes with a test of the 200-week moving average. If this moving average acts as resistance, bulls risk the stock being rejected from the prior breakout area.

If that’s the case, the key $160 support area remains vulnerable. A break of this level puts last month’s low in play at $156.23.

If Clorox can build above $166 though, bulls may be able to make a case for being long. However, a move over Tuesday’s high and the 21-week moving average can really open things up.

In that case, the gap-fill from the company’s prior earnings reaction in early August could be on the table, up near $179. That’s followed by the declining 50-week moving average and downward channel resistance.

Should Clorox find a way to clear all of these levels, the low-$190s are on the table followed by a potential push to $200 or beyond.