CPB closes lower for the 2nd day in a row
Campbell Soup Company (CPB) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CPB finished Tuesday at 47.54 losing $0.18 (-0.38%), slightly underperforming the S&P 500 (-0.15%). 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 Jan 14, 2020):
Tuesday's trading range has been $0.34 (0.71%), that's below the last trading month's daily average range of $0.59. 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. Prices continued to consolidate within a tight trading range between 47.38 and 48.03 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
Prices are trading close to the key technical support level at 47.42 (S1). Campbell Soup closed back below the 50-day moving average at 47.71. The market found buyers again today around 47.45 for the third trading day in a row after having found demand at 47.48 in the previous session and at 47.38 two days ago. The last time this happened on December 17, 2019, CPB gained 0.96% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 48.03 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Campbell Soup. Out of 44 times, CPB closed higher 54.55% 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 70.45% with an average market move of 1.76%.