It took just THREE days for 48 days of gains and sideways action to be wiped out for the Colgate-Palmolive Company (NYSE: CL). Most investors would stay clear of $CL after this big drop, but the smart investor is looking for major support to buy and profit from a short-term bounce. I have found that support on the $CL charts. It is at $70 which is very near Friday's close of $70.86. You can see on the daily chart, the 200 moving average is at $69.91. There is also a gap fill at $69.99 that hasn’t yet been filled, and a 0.25 fib retrace at $69.25. These are just half of the factors I see in this general area, so it should be very good support for a bounce back to $73 at least. I'll be looking for a pierce of $70 to jump in on the long side.

By Pro-Trader

Caralee Carlson