Church & Dwight broke out of a long base in November, surging over 10 points. This maker of Trojan Condoms has now pulled back to less than 2 points above its 50 day moving average and is resting just above its 38.2% Fibonacci retracement. Also, [[CHD]] is approaching support generated from the May high. The convergence of 3 technicals with a stock that is severly oversold is likely to offer protection (pun intended) from more near-term downside and creates conditions which make a bounce likely.
You can read previous RSI(2)<2 picks here: Archive for RSI(2) Oversold Play.
Did you also check ADS ? It was on a 2 year trendline with RSI(2) < 2, though I didn’t jump on to it. It did well on the last trading day!
I took the siganl picking up some at 53.61
Condoms, who knew?
Church and Dwight… been moving along nicely now for 18 months. Good baking soda.
Nice long termer for the IRA, imho.
Fly getting too bearish. Probably time for a bounce here.
CHD bounced perfectly from the 50 day today. It was seamless. I almost doubled my position, but then I would have been overweight the position. Anyway, I “feel” good about this one. We’ll see if oversold can pull this strong stock back up.
Suresh, ADS is in takeover/buyout procedures.
Jake Gint- I understand his bearishness. However, it is hard for me to believe that things will be any different than usual, which means we do not go straight down from here. At least not tomorrow.