CPB pushes through key technical resistance level
Campbell Soup Company (CPB) Technical Analysis Report for Feb 05, 2020 | by Techniquant Editorial Team
CPB finished Wednesday at 49.00 gaining $0.34 (0.7%), slightly underperforming the S&P 500 (1.13%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CPB as at Feb 05, 2020):
Wednesday's trading range has been $0.44 (0.9%), that's below the last trading month's daily average range of $0.65. 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. Prices continued to consolidate within a tight trading range between 48.28 and 49.30 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on November 12, 2019, CPB gained 2.13% on the following trading day.
Buyers managed to take out the key technical resistance level at 48.80 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 49.30 (R1). After having been unable to move lower than 48.60 in the prior session, the stock found buyers again around the same price level today at 48.64.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 49.30 where further buy stops could get activated. With prices trading close to this year's high at 49.56, upside momentum might accelerate should the market 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 Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Campbell Soup. Out of 602 times, CPB closed higher 51.16% 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 10 trading days, showing a win rate of 55.48% with an average market move of 0.31%.