CAG unable to break through key resistance level
ConAgra Brands Inc. (CAG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CAG ended Wednesday at 34.79 gaining $0.22 (0.64%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CAG as at Sep 16, 2020):
Wednesday's trading range has been $0.55 (1.58%), that's below the last trading month's daily average range of $0.80. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CAG. Prices continued to consolidate within a tight trading range between 34.21 and 35.13 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 35.04 (R1), the market closed below it after spiking up to 35.13 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 9th, CAG lost -3.10% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 34.21 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for ConAgra Brands. Out of 732 times, CAG closed higher 52.46% 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 59.15% with an average market move of 0.48%.