Based on the 15-minute chart of Clorox, a narrowing of Bollinger Bands and a death cross on the KDJ indicator on August 20th, 2025 at 2:15 PM suggest a decrease in the magnitude of stock price fluctuations, a shift in momentum towards the downside, and a potential for further decreases in the stock price.
The Clorox Company (CLX) has been facing a complex investment landscape, with mixed signals from both technical indicators and analyst ratings. Despite strong fundamentals, the stock has shown signs of weakness, prompting caution among investors.
On August 20, 2025, at 2:15 PM, the 15-minute chart of Clorox indicated a notable shift in momentum. The narrowing of Bollinger Bands and the death cross on the KDJ indicator suggest a decrease in the magnitude of stock price fluctuations, a shift in momentum towards the downside, and a potential for further decreases in the stock price [3]. This technical analysis aligns with the broader bearish signals seen in the market, where the MACD indicator and ex-dividend dates have also indicated short-term sell-offs [2].
The company reported strong earnings in its fiscal fourth-quarter results, with adjusted EPS of $2.87 and revenue of $1.99 billion, surpassing Wall Street expectations [1]. However, the stock has underperformed the broader market and the Consumer Staples Select Sector SPDR Fund (XLP) over the past year. Clorox's stock prices have decreased 14.4% over the past 52 weeks and 24.3% on a YTD basis, compared to the S&P 500 Index's 19% gains over the past year and a 10% rise in 2025 [1].
Analysts are divided on the stock's outlook. Of the 18 analysts covering the stock, opinions include one "Strong Buy," 13 "Holds," and four "Strong Sells." The consensus rating is "Hold," with a mean price target of $133.31, implying a modest 8.5% premium to current price levels [1]. Morgan Stanley's Dara Mohsenian maintained an "Equal-Weight" rating on Clorox but cut the price target from $150 to $137 [1].
While the technical indicators are bearish, institutional investors have shown optimism. Institutional inflows, particularly from large and extra-large investors, have been strong, suggesting a more positive outlook in the longer term [2]. AlphaCore Capital LLC, for instance, increased its holdings by 65.9% in Q1, purchasing 2,817 additional shares [3].
Despite these mixed signals, investors should be cautious. The recent technical picture and analyst ratings suggest caution, and the dominance of bearish technical signals indicates a strong cautionary recommendation to avoid the stock in the short term [2]. Key events such as earnings and dividend announcements could provide clearer signals for investors to consider before making any investment decisions.
References:
[1] https://finance.yahoo.com/news/clorox-stock-wall-street-bullish-115726763.html
[2] https://www.ainvest.com/news/stock-analysis-clorox-outlook-navigating-weak-technicals-mixed-analyst-views-2508/
[3] https://www.ainvest.com/news/clorox-15-minute-chart-shows-macd-kdj-death-cross-signals-2508/
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