To The Moon

$Clorox(CLX)$ 💸📈🅱️ U͎ L͎ L͎ I͎ S͎ H͎ 💰

🧼📉🚀 Cloro at a Crossroads: Deep Value, High Yield, and a Political Twist You Can’t Ignore 🚀📉🧼

As Wall Street fawns over semis and AI, a quietly explosive setup is forming in one of the most overlooked corners of the market: household staples. Clorox ($CLX) just flashed a structural reversal from multi-month lows, with overnight momentum on 3 June 2025 🇳🇿NZ Time lifting the stock +2.07% to $132.99. Beneath this modest move lies a cocktail of undervaluation, technical inflection, and even political controversy that could ignite a broader re-rating.

📉 Relative Weakness or Strategic Entry?

Despite a broad market rally Monday (S&P 500 +0.41%, Dow +0.08%), $CLX slipped 1.21% to close at $130.29, breaking a 2-day green streak. That move took it 23.97% below its 52-week high of $171.37. Yet even in decline, it outperformed rivals: $PG (-1.24%), $CL (-1.09%), and $ECL (-0.18%). With volume (1.4M) under its 50-day average, this wasn’t panic selling, it was controlled distribution, possibly absorption.

Now, price has reclaimed the 5-week MA ($132.82) for the first time in three months, forming a bullish hammer reversal on the weekly chart. This may be the signal patient capital has been waiting for.

📊 Fundamentals That Demand Attention

Forward P/E: 18.47

ROIC: 33%

ROE: 318.65%

EPS (TTM): $5.57

Dividend Yield: 3.75%, supported by a 70% payout ratio

SG&A has been cut from 18.4% to 15.8%, boosting operating leverage

This is a margin-protected, cash-heavy, defensive leader with consistent return on capital and a compelling valuation. Not only is the stock trading below its historical averages, it’s doing so at a time when yield-seeking institutions are circling back to staples.

📈 Technical Setup: Reversal in Progress

Price: $132.99 overnight (above MA5: $132.82)

MA10: 136.65, MA20: 144.19, MA30: 150.93

RSI(6): 20.82 turning up

MACD histogram flattening, DIF stabilising at -6.45

CR Indicator: MA lines tightening, often a prelude to breakouts

The wedge pattern forming on both the weekly and monthly charts suggests a possible structural breakout into Q3. Confirmation arrives with a close above MA10 and volume expansion above 1.6M.

💼 Political Spotlight: Senator Tuberville’s Trades

In a recent shocking disclosure, U.S. Senator Tommy Tuberville revealed nearly 100 recent trades, including buying, selling, and PUT options on companies he legislates over, $CLX among them. Alongside $QCOM, $LSCC, $SWKS, and $CCL, Clorox has suddenly found itself in the political crosshairs.

Why does this matter? Because Tuberville isn’t hedging a random position. He’s actively trading leverage on companies with regulatory exposure. For $CLX, this suggests insider-like conviction that something big is coming!

🧠 Options and Short Flow: Setup Is Loaded

June $130 Calls: 42 contracts traded, pricing at $2.75

Short Volume: 387.7K (48.90% of daily volume)

Short Ratio: 15.56%

Implied Volatility: 23.54%, low enough for call spreads or diagonals

With short interest elevated and price starting to reverse, the probability of a squeeze into $140 plus territory increases significantly if momentum sustains.

🎯 What to Watch Next

Weekly close above $132.80 (MA5 reclaimed)

Push above $136.65 (MA10) as first breakout zone

Volume spike above 1.6M and options flow shifting bullish

Any new headlines on political trading restrictions or further filings from Tuberville

📈 Analyst Targets and Potential Upside

Average Price Target: $148.42

Highest: $189.00

Current Upside: 12% to 42% from here

💥 Scenarios Ahead

Bull Case (65%): $CLX breaks above MA10 and squeezes to $144 to $150 as institutions rotate into value and defensive yields

Base Case (25%): Consolidates between $128 to $136 as market digests Fed tone and inflation signals

Bear Case (10%): A break below $128.79 triggers stop runs to $120, but is cushioned by valuation, dividend, and political scrutiny

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Trade like a boss! Happy trading ahead, Cheers, BC 📈🚀🍀🍀🍀

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