Cl, Colgate Palmolive

On Jan 27th, 2010, about a year ago we recommended selling this stock at just under $80. Here is that chart.

CL Jan 27 2010

At the time the stock was near its upper parallel trend-line , always a good spot to sell even if the count was not clear. That was a little premature but today the stock is at the same level and the count is, relatively clear. here is the chart again;

cl 2011

For greater clarity this chart represent a 10 year shorter time-frame but the red trend-line from the original is more or less duplicated in the new chart. Two counts come to mind. The alternative one (not shown) would have at least two 1-2s at the beginning and  , therefore, also two 4-5s at the end. In that scenario the top could already be in. In the count shown we assume that the stock is in its 5th and last wave. Given the degree of overlap that has already occurred chances are very high that the stock is forming a diagonal (wedge). This is the only structure that allows for overlap, it also only exists in either 5th, or c waves. It is an exhaustion pattern that is ,almost invariable, retraced in its entirety, in this case back to $40. You can wait for it to go to about $90 or just say thanks for the ride.