$CLX long-term buy! (4/5)

Conviction: 4/5
Entry is not idea, could have better entry point if price goes down to retest support.

Main thesis

• Bounced off long-term (1991) channel bottom in December
  
• Bounced off 50M-MAas well
  
• RSI-M also bounced off historical lows, although not levels with highest certainty
  
• Confirmed breakthrough from downward resistance line last week
  
• Touching lower bound of channel (2016)
  

Misc Info

• P/S level of 3ish is high relative to historical levels, however much lower than some other tech companies...
  
• P/S level of 3 is about the same as S&P 500
  
• Healthcare (XLV) looks good compared to SPY, could carry this up as well
  

Potential Risks

• RSI-W is heating up, although does not preclude from uptrend in medium term (about a year)
  
• Just broke through (with confirmed close) last week from downtrend resistance line
  
• Quick ratio is deteriorating from mid 2021
  
• General markets are very expensive, and we all know correlation goes to 1 in selloff.
  
• Revenue growth is negative ... likely as people become less sensitive to COVID?