CPB runs into sellers around 49.72 for the forth day in a row
Campbell Soup Company (CPB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CPB ended the month -2.65% lower at 49.63 after gaining $0.38 (0.77%) today, underperforming the S&P 500 (1.54%). Trading up to $0.31 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 15th, CPB gained 1.63% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CPB as at Jun 30, 2020):
Tuesday's trading range has been $0.56 (1.13%), that's far below the last trading month's daily average range of $1.38. 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. Prices continued to consolidate within a tight trading range between 48.16 and 49.83 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 49.85 (R1). Campbell Soup was sold again around 49.72 after having seen highs at 49.79, 49.83 and 49.83 in the last three trading sessions. Obviously there is something going on at that level.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 50.35 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior three Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 14 times, CPB closed higher 64.29% 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 64.29% with an average market move of 2.19%.