This Boring Household Staple May Be a Hidden Gem

[Trading With Larry Benedict]( This Boring Household Staple May Be a Hidden Gem By Larry Benedict, editor, Trading With Larry Benedict Few things are certain in life – death and taxes often come to mind. In the current era, you may want to add to that list “tech stocks driving the market higher.” So far this year, the technology sector is up 20%. The communications sector, filled with Meta, Alphabet, and Netflix, is up 16%. These are the only two sectors that have outperformed the S&P 500’s gain of 15%. The strength of these two sectors has allowed the S&P 500 to notch its 30th all-time high so far this year. That’s well above the average of 19 all-time highs a year over the past 50 years. But the overconcentration of tech stocks in the market’s gains leaves investors vulnerable. We can tell this by looking at the Relative Strength Index (RSI). When the RSI rises above 70, the stock may be overbought, and a price correction could be imminent. When the RSI is below 30, the stock may be oversold, and a price increase could be coming. Currently, the S&P 500’s RSI is76, which signifies overbought conditions. The tech-heavy Nasdaq 100 sits at an RSI of 82, the highest level it has reached in six years. In these overstretched conditions, you should consider digging into other areas of the market to find bargains. There are tons of attractive setups across different sectors that may catch up to the market by year-end. So let’s take a look at a name that has just broken out of a monthlong consolidation. It’s showing all the signs of a stock that’s heading higher. It’s a boring household staple. But the setup is very exciting… Recommended Link [The 2024 TECH RESET]( [image]( [Are we on the edge of the biggest ‘TECH RESET’ in decades?]( The expert who called the dot-com crash of 2000, says: [“A $17 trillion stock market panic could FORCE America’s most-loved tech stocks to MELTDOWN.]( Ultimately, dragging down thousands of other stocks in their wake – in what will be an unprecedented market panic.” This is why a staggering 31 billionaires are selling their stocks, right now, at a record pace. [Click here for the step-by-step details.]( -- This Boring Name Could Attract a Lot of Buzz Colgate-Palmolive (CL) is a juggernaut in the household and personal care products industry. You likely have a few of its products tucked away in your kitchen or bathroom right now. The stock has had a great year so far, rising by 20%. Over the past few weeks, though, it has taken a healthy breather. Yet now signs are telling us that there’s still life in this stock. You can see what I mean in the chart below: [chart] [(Click here to expand image)]( CL has broken out of a monthlong consolidation. As you can see, the price of CL has risen above the purple line. That line previously served as a resistance level. And two classic signals should pique your interest. They could signal more gains to come… The first is in the moving average convergence/divergence (MACD) section in the middle of the chart. The MACD line is a momentum indicator. When it crosses above the orange signal line, it’s a bullish signal. That signal is even stronger due to its position well above the zero line. That confirms the stock is in an upward trend. The second indicator to watch is the RSI at the bottom of the chart. RSI measures the speed and strength of price movements. Remember, as I mentioned above, an RSI above 70 suggests a stock could be overbought. And an RSI below 30 hints that the stock could be oversold. CL’s RSI is currently 66, which means it’s in a sweet spot – above 50 but not yet overbought. So momentum is strong, but CL isn’t yet at a point where we need to worry about a pullback. The last time CL broke out of a monthlong base with a bullish MACD and RSI was in late January of this year. Following the breakout, the stock rose by 5% over the span of five days. It then went on to rise an additional 6% over the following two months. So we’re looking at a prime setup for this stock to continue rising. Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. All-Around Strength Outside of its technical attractiveness, Colgate has strong fundamentals. That should only add to our confidence in this name. On April 26, the company reported Q1 earnings results that blew analyst forecasts out of the water. It sold 1.3% more products than a year ago – even with a 9% increase in the average price per product. Colgate is actively proving that its products remain in heavy demand. And consumers aren’t turning away from them in the face of price hikes. The strength of its Q1 results led the company to raise its 2024 sales forecast by 2 percentage points. Ultimately, Colgate is benefiting from continued consumer demand. And its stock is looking set to rally further. If you’re looking for a call option trade, CL could be a triple-digit winner if this setup plays out. Regards, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](