CAG dominated by bulls lifting the market higher throughout the day
ConAgra Brands Inc. (CAG) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
CAG finished Wednesday at 29.39 surging $0.79 (2.76%), strongly outperforming the S&P 500 (0.63%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on November 13th, CAG gained 0.46% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 28.72, the market confirmed its breakout through the previous session high after trading up to $0.74 above it intraday.
Daily Candlestick Chart (CAG as at Dec 04, 2019):
Wednesday's trading range has been $0.87 (3.04%), that's far above the last trading month's daily average range of $0.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CAG.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 28.86 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 29.64 (R1).
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying could move prices higher should the market test November's close-by high at 29.64.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Its common bullish interpretation has been confirmed for ConAgra Brands. Out of 19 times, CAG closed higher 52.63% of the time on the next trading day after the market condition occurred.