CAG finds buyers around 25.64 for the third day in a row
ConAgra Brands Inc. (CAG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CAG ended Thursday at 27.85 gaining $1.77 (6.79%) on low volume, outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 27.55, the market confirmed its breakout through the previous session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (CAG as at Mar 26, 2020):
Thursday's trading range has been $2.35 (9.03%), that's slightly above the last trading month's daily average range of $2.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CAG.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on March 16th, CAG gained 9.52% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 27.10 for the first time since March 17th. Prices are trading close to the key technical resistance level at 28.97 (R1). ConAgra Brands found buyers again today around 25.64 for the third trading day in a row after having found demand at 25.90 in the previous session and at 25.75 two days ago.
CAG shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for ConAgra Brands. Out of 87 times, CAG closed higher 54.02% 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 56.32% with an average market move of -0.08%.