CPB breaks back above 200-day moving average
Campbell Soup Company (CPB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CPB ended the week -9.68% lower at 48.35 after gaining $1.17 (2.48%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 48.20, the market confirmed its breakout through the previous session high after trading up to $0.27 above it intraday.
Daily Candlestick Chart (CPB as at May 22, 2020):
Friday's trading range has been $1.34 (2.84%), that's slightly above the last trading month's daily average range of $1.30. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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 May 15th, CPB actually lost -4.84% on the following trading day.
The stock managed to close back above the 200-day moving average at 47.58. Prices are trading close to the key technical resistance level at 49.19 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 50.71.
Campbell Soup shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 46.90 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Campbell Soup. Out of 44 times, CPB closed lower 61.36% of the time on the next trading day after the market condition occurred.