CPB pushes through key technical resistance level
Campbell Soup Company (CPB) Technical Analysis Report for Jan 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CPB finished Thursday at 48.09 gaining $0.31 (0.65%), slightly underperforming the S&P 500 (0.84%). Trading up to $0.13 lower after the open, Campbell Soup managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 9th, CPB gained 0.23% on the following trading day. Closing above Wednesday's high at 47.97, the share confirmed its breakout through the previous session high after trading up to $0.13 above it intraday.
Daily Candlestick Chart (CPB as at Jan 16, 2020):
Thursday's trading range has been $0.39 (0.82%), that's below the last trading month's daily average range of $0.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CPB.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 48.07 (now S1), which is likely to act as support going forward.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 47.45 where further sell stops might get activated.
Among the nine 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 Campbell Soup. Out of 748 times, CPB closed higher 51.60% of the time on the next trading day after the market condition occurred.