Clorox (CLX) – Golden Cross Signals a Potential Bullish Run
Clorox (NYSE: CLX) is catching the attention of investors as it enters September with strong momentum. After a solid August, where the stock climbed more than 20%, Clorox is now flashing a classic bullish chart pattern known as the “golden cross.” This occurs when the 50-day moving average crosses above the 200-day moving average, signaling potential further upside. What makes this even more compelling is that Clorox’s 200-day moving average is starting to slope upward, adding weight to the bullish sentiment.
This technical signal comes after a challenging period for Clorox, where it had previously experienced a “death cross” back in May. However, the company has since turned the corner, bolstered by stronger-than-expected fiscal fourth-quarter earnings and an optimistic outlook for fiscal 2025. Analysts are now more confident in Clorox’s ability to weather economic uncertainties, especially given its position as a defensive play. The company’s 3%+ dividend yield also adds to its appeal, offering income potential in addition to capital gains.
As Clorox moves into September with this golden cross in play, it might be an opportune time to consider adding this stock to your portfolio. With the Federal Reserve potentially easing interest rates soon, and Clorox’s strong performance in recent months, the stock could be poised for further gains as we head into the fall.
