CPB closes below its opening price unable to hold early session gains
Campbell Soup Company (CPB) Technical Analysis Report for Mar 31, 2020 | by Techniquant Editorial Team
CPB ended the month 2.3% higher at 46.16 after edging lower $0.37 (-0.8%) today on low volume, but still outperforming the S&P 500 (-1.6%). Trading $0.68 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 24th, CPB lost -4.80% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CPB as at Mar 31, 2020):
Tuesday's trading range has been $1.38 (2.97%), that's far below the last trading month's daily average range of $3.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CPB.
After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 45.42 (S1). After having been unable to move above 46.81 in the previous session, Campbell Soup ran into sellers again around the same price level today, missing to move higher than 47.20.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 406 times, CPB closed higher 52.96% 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 57.14% with an average market move of 0.32%.