CPB unable to break through key resistance level
Campbell Soup Company (CPB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CPB ended the week -0.49% lower at 48.64 after gaining $0.28 (0.58%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday.
Daily Candlestick Chart (CPB as at Feb 14, 2020):
Friday's trading range has been $0.55 (1.14%), that's below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CPB.
The stock managed to close back above the 50-day moving average at 48.42. Unable to break through the key technical resistance level at 48.80 (R1), the share closed below it after spiking up to 48.82 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Tuesday, CPB lost -1.13% on the following trading day.
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 49.07 where further buy stops could get triggered. With prices trading close to this year's high at 49.56, upside momentum might accelerate should Campbell Soup be able to break out to new highs for the year. As prices are trading close to February's high at 49.30, upside momentum could speed up should the market mark new highs for the month.
Among the five 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 164 times, CPB closed higher 51.83% 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 54.27% with an average market move of 0.04%.