Support 1: 133.28 Resistance 1: 138.98
Support 2: 127.40
Kimberly-Clark’s has been rising steadily and based on the Elliott wave count, the stock is leaving its 4th wave correction on a strong note when the stock’s price rebounded near the previous support at 132.69. This indicates a strong bullish movement. To further add on, the 4th wave correction is weak and with the formation of the Ascending triangle, we are expecting the price to break out of the triangle resistance on the next period to carry on the 5th wave.
Price action also gave the stock a strong indication when last Thursday’s hammer candlestick pattern rejects the 22SMA and Friday followed by a strong bull candle. Also, the resistance top has been tested three times, and hence, the resistance level should be weakening now.
*Should price drop below support level 1 with two candles below, then the whole ascending triangle will be invalidated and the stock will most likely enter into a ranging phase.
Red dotted line = 200 period moving average
Blue dotted line = 50 period moving average
Green dotted line = 200 period moving average