CPB runs into sellers again around 46.02
Campbell Soup Company (CPB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CPB ended Wednesday at 45.26 losing $0.26 (-0.57%), slightly underperforming the S&P 500 (-0.46%). Trading $0.39 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 45.31, the stock confirmed its breakout through the prior session low after trading up to $0.20 below it intraday.
Daily Candlestick Chart (CPB as at Sep 16, 2020):
Wednesday's trading range has been $0.91 (1.99%), that's slightly below the last trading month's daily average range of $1.30. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CPB.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
Prices are trading close to the key technical support level at 44.97 (S1). After having been unable to move above 45.98 in the previous session, Campbell Soup ran into sellers again around the same price level today, failing to move higher than 46.02. The last time this happened on September 2nd, CPB lost -7.47% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 46.43 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 44.97 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Campbell Soup. Out of 439 times, CPB closed higher 55.35% 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 55.35% with an average market move of 0.26%.