CPB pushes through Wednesday's high
Campbell Soup Company (CPB) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CPB ended Thursday at 48.96 gaining $0.39 (0.8%) on high volume, outperforming the S&P 500 (0.11%). Today's close at 48.96 marks the highest recorded closing price since December 31, 2019. Closing above Wednesday's high at 48.83, the market confirmed its breakout through the prior session high after trading up to $0.37 above it intraday.
Daily Candlestick Chart (CPB as at Jan 23, 2020):
Thursday's trading range has been $1.00 (2.06%), that's far above the last trading month's daily average range of $0.59. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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.
After trading as low as 48.20 during the day, Campbell Soup found support at the 20-day moving average at 48.40. The last time this happened on January 2nd, CPB actually lost -0.12% on the following trading day.
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 could speed up should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 85 times, CPB closed higher 56.47% 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 52.94% with an average market move of 0.09%.