CPB closes higher for the 2nd day in a row
Campbell Soup Company (CPB) Technical Analysis Report for Feb 08, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CPB finished the week -2.06% lower at 34.29 after gaining $0.09 (0.26%) today on low volume, slightly outperforming the S&P 500 (0.07%). The bulls were in full control today, moving the market higher throughout the whole session. 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 (CPB as at Feb 08, 2019):
Friday's trading range has been $0.34 (1.0%), that's far below the last trading month's daily average range of $0.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for CPB.
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 support level at 33.90 (S1). After having been unable to move above 34.38 in the previous session, Campbell Soup ran into sellers again around the same price level today, failing to move higher than 34.40. The last time this happened on Tuesday, CPB lost -2.20% on the following trading day.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 33.45 where further sell stops might get activated. With prices trading close to this year's high at 35.95, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 614 times, CPB closed higher 50.65% 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 55.54% with an average market move of 0.11%.