Clorox is a manufacturer and marketer of consumer products. Co. sells its products through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, and third-party, among others. Co.'s segments are: Health and Wellness, which consists of cleaning and disinfecting products, home care products, food service products, and vitamins, minerals and supplement products; Household, which consists of grilling products; bags and wraps; and cat litter products; Lifestyle, which consists of food products, water-filtration systems and filters, and personal care products; and and International, which consists of products sold outside the U.S.
When researching a stock like Clorox, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CLX Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CLX stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the CLX 200 day moving average ("CLX 200 DMA"), while one of the most popular "shorter look-backs" is the CLX 50 day moving average ("CLX 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Clorox. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the CLX 200 DMA and the CLX 50 DMA, we get a moving average convergence divergence indicator ("CLX MACD"). The CLX MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
Video: Technical Analysis