CAG finds buyers again around 32.04
ConAgra Brands Inc. (CAG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CAG finished the week 2.32% higher at 32.69 after gaining $0.11 (0.34%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.59 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CAG as at Feb 14, 2020):
Friday's trading range has been $0.71 (2.18%), that's slightly below the last trading month's daily average range of $0.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CAG.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on December 31, 2019, CAG actually lost -1.78% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
The stock managed to close back above the 20-day moving average at 32.65. After having been unable to move lower than 32.12 in the previous session, the share found buyers again around the same price level today at 32.04.
Although ConAgra Brands is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 33.02 where further buy stops might get triggered. With prices trading close to this year's low at 31.61, downside momentum could accelerate should CAG break out to new lows for the year. As prices are trading close to February's high at 33.27, upside momentum might speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ConAgra Brands. Out of 69 times, CAG closed higher 49.28% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.42% with an average market move of 0.43%.