CPB unable to break through key resistance level
Campbell Soup Company (CPB) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
CPB finished the week 1.6% higher at 48.79 after losing $0.17 (-0.35%) today, but still outperforming the S&P 500 (-0.9%). Trading $0.34 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 17th, CPB actually gained 1.12% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CPB as at Jan 24, 2020):
Friday's trading range has been $0.97 (1.98%), that's far above the last trading month's daily average range of $0.62. 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.
Unable to break through the key technical resistance level at 49.44 (R2), the share closed below it after spiking up to 49.45 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 48.20 where further sell stops might get activated. With prices trading close to this year's high at 49.56, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. Its common bearish interpretation has been confirmed for Campbell Soup. Out of 14 times, CPB closed lower 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 71.43% with an average market move of -2.68%.