CPB closes within previous day's range
Campbell Soup Company (CPB) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
CPB finished Monday at 47.72 losing $0.01 (-0.02%), underperforming the S&P 500 (0.7%). Trading $0.29 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CPB as at Jan 13, 2020):
Monday's trading range has been $0.54 (1.13%), that's slightly below the last trading month's daily average range of $0.60. 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 slightly lower than usual for CPB.
Four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
Prices are trading close to the key technical support level at 47.42 (S1). Prices are trading close to the key technical resistance level at 48.07 (R1). After having been unable to move above 47.99 in the previous session, Campbell Soup ran into sellers again around the same price level today, failing to move higher than 48.02. The last time this happened on January 7th, CPB lost -1.74% on the following trading day.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 398 times, CPB closed higher 53.27% 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 57.04% with an average market move of 0.34%.