CPB closes within previous day's range
Campbell Soup Company (CPB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CPB finished Thursday at 43.59 gaining $2.18 (5.26%), underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CPB as at Mar 26, 2020):
Thursday's trading range has been $3.51 (8.43%), that's slightly above the last trading month's daily average range of $3.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CPB. Prices continued to consolidate within a tight trading range between 40.70 and 45.06 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 43.35 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 46.15 (R1). After having been unable to move lower than 41.18 in the previous session, the share found buyers again around the same price level today at 40.70. The last time this happened on Tuesday, CPB actually lost -4.80% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 48.26.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Campbell Soup. Out of 66 times, CPB closed higher 59.09% 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 60.61% with an average market move of 0.91%.