CPB breaks back above 20-day moving average for the first time since January 6th
Campbell Soup Company (CPB) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
CPB finished Tuesday at 48.56 gaining $0.54 (1.12%), significantly outperforming the S&P 500 (-0.27%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 48.32, Campbell Soup confirmed its breakout through the prior session high after trading up to $0.37 above it intraday.
Daily Candlestick Chart (CPB as at Jan 21, 2020):
Tuesday's trading range has been $0.78 (1.62%), that's above 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 below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CPB.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on December 31, 2019, CPB lost -1.88% on the following trading day.
The market managed to close back above the 20-day moving average at 48.43 for the first time since January 6th. Prices are trading close to the key technical resistance level at 48.80 (R1). After having been unable to move lower than 47.97 in the previous session, the stock found buyers again around the same price level today at 47.91.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 49.56, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 84 times, CPB closed higher 55.95% 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 six trading days, showing a win rate of 53.57% with an average market move of 0.09%.