In today's stock of the day, let’s take a look at Colgate-Palmolive, which is approaching a critical technical juncture. The stock has been consolidating within a well-defined symmetric triangle pattern, outlined by black trendlines. This narrowing range suggests that a significant move is on the horizon, and we are now getting close to the breakout point.
Currently, the price is testing the lower boundary of this triangle. The pressure on this support increases the probability of a bearish breakout. A daily close below both the lower black trendline and the green horizontal support level would generate a strong sell signal, potentially initiating a new downward wave.
Alternatively, if buyers step in and defend this support, pushing the price back up and managing a daily close above the upper boundary of the triangle, that would serve as a bullish breakout and an invitation to go long.
In short, the setup is mature, and the breakout—either way—will define the next major move for Colgate-Palmolive.