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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The Moving Average Convergence Divergence (MACD) for CL turned positive on October 06, 2026. Looking at past instances where CL's MACD turned positive, the stock continued to rise in 22 of 44 cases over the following month. The odds of a continued upward trend are 50%.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CL's RSI Indicator exited the oversold zone, 13 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 46%.
The Momentum Indicator moved above the 0 level on October 06, 2026. You may want to consider a long position or call options on CL as a result. In 31 of 70 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 44%.
Following a +3.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where CL advanced for three days, in 143 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 46%.
CL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 46%.
The Aroon Indicator for CL entered a downward trend on October 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is 8 (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 12 (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 51 (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 62 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 93 (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 (294.118) is very high in comparison to the industry average of (18.044). P/E Ratio (34.063) is within average values for comparable stocks, (43.673). Projected Growth (PEG Ratio) (1.577) is also within normal values, averaging (1.518). Dividend Yield (0.024) settles around the average of (0.024) among similar stocks. P/S Ratio (3.331) is also within normal values, averaging (1.931).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of oral, personal, and household products
Industry HouseholdPersonalCare