Consumer goods giant Kimberly-Clark (NYSE:KMB) reversed sharply lower Tuesday, trading down by $4.23 to $126.02 a share. The stock soared to new 52-week highs after reporting earnings on Monday when KMB traded as high as $132.47. Traders must always be cautious when stocks reverse so much of there recent gains from a break-out. Often a reversal of this magnitude could signal much more downside in the near term. Please understand that while the stock is still in an up-trend and trading above its 20- and 50-day moving averages, a reversal like this usually signals further downside in the shares.
Support
There are several support levels coming up such as the gap fill from the April 18, 2019 close, the 50-day moving average and the $118 break-out level. Out of all of these near-term support levels the $118.00 area looks like the best area for a solid bounce.