CPB dominated by bears dragging the market lower throughout the day
Campbell Soup Company (CPB) Technical Analysis Report for Feb 12, 2020 | by Techniquant Editorial Team
CPB ended Wednesday at 48.18 losing $0.55 (-1.13%), notably underperforming the S&P 500 (0.65%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (CPB as at Feb 12, 2020):
Wednesday's trading range has been $0.63 (1.3%), that's slightly below the last trading month's daily average range of $0.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CPB.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading down to 48.05 earlier during the day, the stock bounced off the key technical support level at 48.07 (S1). The failure to close below the support might increase that levels significance as support going forward. Campbell Soup closed back below the 50-day moving average at 48.37 for the first time since February 6th. When this moving average was crossed below the last time on February 6th, CPB actually gained 1.50% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 47.78 where further sell stops could get activated. With prices trading close to this year's low at 46.84, downside momentum might accelerate should the share break out to new lows for the year.
Among the eight 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 100 times, CPB closed higher 59.00% of the time on the next trading day after the market condition occurred.