Swing Trade Idea (CL) – December 01, 2022
Our bullish trade for Thursday, December 1st is Colgate-Palmolive Company (CL). CL is part of the Consumer Staples Sector, which has performed at 6.12% over the last month, with CL indicating the same bullishness as its sector at 4.93% over the same period.
CL had a strong rally and broke above a ley level at $75, from where it traded higher following a retest of this level. Both the 1M and 6M trends are bullish and it has a Relative Strength of 6 (out of 10), providing a good risk/reward bullish entry.
As a close, if CL were to trade below $75 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $2.16.
