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.
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Momentum Indicator for CL turns negative, indicating new downward trend
CL saw its Momentum Indicator move below the 0 level on August 18, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 68 similar instances where the indicator turned negative. In of the 68 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for CL turned negative on August 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
CL moved below its 50-day moving average on August 19, 2026 date and that indicates a change from an upward trend to a downward trend.
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 .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CL advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 steady 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 that the returns do not compensate for the risks. CL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock 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 (303.030) is very high in comparison to the industry average of (23.642). P/E Ratio (35.858) is within average values for comparable stocks, (56.718). Projected Growth (PEG Ratio) (1.754) is also within normal values, averaging (2.919). Dividend Yield (0.023) settles around the average of (0.034) among similar stocks. P/S Ratio (3.487) is also within normal values, averaging (2.707).
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General Information
a maker of oral, personal, and household products
Industry HouseholdPersonalCare
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