CAG closes within prior day's range after lackluster session
ConAgra Brands Inc. (CAG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CAG finished the week -4.36% lower at 32.68 after gaining $0.43 (1.33%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.26 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CAG as at May 22, 2020):
Friday's trading range has been $0.65 (2.01%), that's below the last trading month's daily average range of $0.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CAG.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 32.87 (R1). After having been unable to move above 32.71 in the prior session, ConAgra Brands ran into sellers again around the same price level today, failing to move higher than 32.71.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 33.57. The last time this happened on March 13th, CAG gained 9.76% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 31.66 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for ConAgra Brands. Out of 59 times, CAG closed higher 62.71% 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 54.24% with an average market move of 0.32%.