CPB breaks back above 50-day moving average
Campbell Soup Company (CPB) Technical Analysis Report for Feb 07, 2020 | by Techniquant Editorial Team
CPB finished the week 1.01% higher at 48.88 after surging $0.72 (1.5%) today, significantly outperforming the S&P 500 (-0.54%). This is the biggest single-day gain in over a month. Closing above Thursday's high at 48.77, Campbell Soup confirmed its breakout through the prior session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (CPB as at Feb 07, 2020):
Friday's trading range has been $1.03 (2.13%), that's far above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being 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 White Candle. The last time a White Candle showed up on Wednesday, CPB actually lost -1.71% on the following trading day.
The stock managed to close back above the 50-day moving average at 48.27. Prices are trading close to the key technical resistance level at 49.30 (R1).
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 close-by 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 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 Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Campbell Soup. Out of 163 times, CPB closed higher 52.15% 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 54.60% with an average market move of 0.04%.