Shooting Star Pattern Could Be a Bad Sign for Colgate-Palmolive Ahead of Earnings
Friday’s trading saw an interesting pattern form on consumer staple stock Colgate-Palmolive (NYSE: CL). The pattern is known as a shooting star pattern in candlestick charting and it is considered a bearish reversal pattern.
What happens with a shooting star is that the stock opens slightly higher, jumps considerably higher during the day, and then falls to close at a similar level that it opened at.
The thinking behind the pattern is that the bulls have been in control and have driven the stock price higher. The bulls are in control on the day in question, but at some point during the day the bears seize control and drive the price down. Here is what it looks like on Colgate-Palmolive’s chart.
We see that the stock moved higher from the December 26 low, jumping from down close to $57 and moved above $63 on Friday. The stock opened at $62.01 on Friday, jumped to a high of $63.27, but closed at $62.21. This meets the definition of a shooting star pattern.
What is particularly interesting about Colgate-Palmolive is that the company is set to release earnings on Friday, January 25. When the company reported earnings back on October, the stock gapped sharply lower after the earnings disappointed investors. The earnings per share missed estimates. The company did see earnings and sales decline in the most recent quarterly report.
CL's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for CL turned positive on June 15, 2026. Looking at past instances where CL's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 15, 2026. You may want to consider a long position or call options on CL as a result. In of 69 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
CL moved above its 50-day moving average on June 09, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CL advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 268 cases where CL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CL broke above its upper Bollinger Band on July 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. CL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CL's P/B Ratio (500.000) is very high in comparison to the industry average of (27.032). P/E Ratio (34.368) is within average values for comparable stocks, (56.326). Projected Growth (PEG Ratio) (1.584) is also within normal values, averaging (2.781). Dividend Yield (0.024) settles around the average of (0.036) among similar stocks. P/S Ratio (3.448) is also within normal values, averaging (2.270).
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General Information
a maker of oral, personal, and household products
Industry HouseholdPersonalCare
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