Today’s technical analysis will be on Kimberly Clark Corp that has retraced from its local top after a clear bearish divergence.
Points to consider, - Price retraced to the .382 Fibonacci - .50 Fibonacci in confluence with structural support - Golden Cross in fruition - RSI diverging from price - Stochastics in lower regions - Volume nodes above average
KMB has respected the .382 Fibonacci allowing the bearish divergence to play out; this has put in a local top. The .50 Fibonacci is in confluence with structural support, this being identified as a key trade location.
The golden cross is coming to fruition, historically a bullish indicator as the price tends to rally.
RSI is diverging from price, putting in consecutive lower highs, currently is neutral. The stochastics is projected downwards with stored momentum; it can stay trading in the lower regions for an extended period of time.
The volume nodes are above average, indicating key trade locations are being tested in this major trend.
Overall, in my opinion, KMB needs to respect the 200 weekly MA to increase the likely hood of breaking local resistance and confirming a blue sky breakout.
What are your thoughts?
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And remember,
“Win, loss whatever emerges in the short-term, place and manage your next trades untouched, unattached... always keeping your eyes on the long-term picture.” ― Yvan Byeajee