In today’s stock of the day, let’s take a closer look at Colgate-Palmolive, which is stuck in a very negative technical setup. The broader picture shows a clear downtrend, with the price making consistent lower lows and lower highs — a textbook sign of bearish momentum.
On August 13, the stock attempted to regain ground by climbing back above the red support line. That move, however, turned out to be short-lived. The failed breakout attempt, marked in yellow, was quickly reversed, and the price dropped again, confirming sellers’ control.
At this point, Colgate-Palmolive trades below the red resistance and, more importantly, below the pink horizontal resistance. Being under both of these key levels is a highly bearish signal. As long as the stock stays capped under these barriers, the negative sentiment dominates, and the path of least resistance points lower.
For buyers to regain hope, the price would need to break back above the pink resistance with a strong close, which would suggest that demand is finally returning. But until that happens, Colgate-Palmolive looks firmly under bearish pressure.