CPB finds buyers at key support level
Campbell Soup Company (CPB) Technical Analysis Report for Feb 06, 2020 | by Techniquant Editorial Team
CPB ended Thursday at 48.16 tanking $0.84 (-1.71%), strongly underperforming the S&P 500 (0.33%). This is the biggest single-day loss in over four weeks.
Daily Candlestick Chart (CPB as at Feb 06, 2020):
Thursday's trading range has been $0.99 (2.04%), that's far above the last trading month's daily average range of $0.64. Weekly volatility is also higher, being slightly above 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 Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on January 8th, CPB gained 0.57% on the following trading day.
After trading down to 47.78 earlier during the day, the market bounced off the key technical support level at 48.03 (S1). The failure to close below the support could increase that levels significance as support going forward. The stock closed below the 50-day moving average at 48.23 for the first time since January 14th.
Though Campbell Soup is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's low at 46.84, downside momentum could speed up should the share break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Campbell Soup. Out of 99 times, CPB closed higher 58.59% of the time on the next trading day after the market condition occurred.