Stock of the day: Colgate

In today’s technical analysis, let’s focus on Colgate, which has been following the bearish path we discussed previously. As highlighted, the head and shoulders pattern, marked within the yellow rectangle, has played out as anticipated. The break below the neckline (red line) and the black uptrend line intensified the negative sentiment, setting Colgate on a downward trajectory that’s clear on the chart.

Currently, the price is testing the first significant support level (marked in orange). If this level gives way under the selling pressure, the next critical level to watch would be the green horizontal support, marking another checkpoint in the ongoing downtrend.

In the case of an unexpected bounce from the orange support, we could see a short to mid-term buy signal; however, the strength of the selling pressure suggests that a bounce may be unlikely at this point. The path lower appears poised to continue unless we see a significant shift in market sentiment.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-colgate