CPB finds buyers around 47.52 for the third day in a row
Campbell Soup Company (CPB) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
CPB finished Wednesday at 47.78 gaining $0.24 (0.5%), slightly outperforming the S&P 500 (0.19%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CPB as at Jan 15, 2020):
Wednesday's trading range has been $0.45 (0.95%), that's below the last trading month's daily average range of $0.59. Weekly volatility is also lower, being slightly below 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 47.45 and 48.03 where it has been caught now for the last three trading days.
Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on December 2, 2019, CPB gained 0.93% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 50-day moving average at 47.74. Prices are trading close to the key technical resistance level at 48.07 (R1). Campbell Soup found buyers again today around 47.52 for the third trading day in a row after having found demand at 47.45 in the previous session and at 47.48 two days ago.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 48.03 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 47.45 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Campbell Soup. Out of 131 times, CPB closed higher 53.44% of the time on the next trading day after the market condition occurred.