CAG closes above its opening price after recovering from early selling pressure
ConAgra Brands Inc. (CAG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CAG ended the month 1.09% higher at 35.17 after surging $1.47 (4.36%) today on high volume, significantly outperforming the S&P 500 (1.54%) following today's earnings report. This is the biggest single-day gain in over three months. Today's close at 35.17 marks the highest recorded closing price since November 13, 2018. Trading up to $0.72 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 18th, CAG actually lost -2.02% on the following trading day. 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 Jun 30, 2020):
CAG reported earnings of $0.75 per share before today's market open. With analysts having expected an EPS of $0.69, ConAgra Brands Inc. beat market expectations by 8.7%. The company's last earnings report was released on March 31, 2020, when ConAgra Brands Inc. reported earnings of $0.47 per share failing market expectations by -4.1%.
Tuesday's trading range has been $1.62 (4.64%), that's far above the last trading month's daily average range of $0.96. Weekly volatility is also higher, being above 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 High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Unable to break through the key technical resistance level at 35.18 (R1), ConAgra Brands closed below it after spiking up to 35.79 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Crossing above the upper Bollinger Band for the first time since May 29th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 33.63 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for ConAgra Brands. Out of 31 times, CAG closed higher 77.42% 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 61.29% with an average market move of 1.25%.