Campbell's ready to pop!

BATS:CPB   Campbell Soup Company
Campbell's looks primed for a pump for a variety of reasons

  • Massive 336 day rounding bottom with rising momentum
  • Golden Cross on daily chart
  • Hit overbought during recovery
  • Staples sector showing recent strength
  • Moving into range where it previously gapped down, potential for sharp rise to top of the range
  • Bullish flag since mid April

Long term monthly chart we can shows CPB recovering from the 200 period moving average along a very lengthy uptrend.

A little tailwind this morning by way of analyst upgrade to market perform from underperform

CPB rebounded strongly today, and with earnings coming up, maybe the trade is to pile in before other optimists position for a positive report.

Technically if the price breaks through the thin trading range it's threatening to the upside, there's potential for a gap-up on the daily chart towards $49!

Sadly, the CPB trade looks to be falling apart. Yesterday there was a clear breakdown in momentum, and today on the daily chart we observe a breakdown out of an upward trend channel. Price is now at a critical point of support at the top of the rounding bottom. If support fails, we'll look for a cup & handle to form, but price could indeed touch $42 in the bear case.

Things don't look as gloomy on a longer term monthly chart though. We still have that upward sloping 200 period moving average at our backs.

The stock isn't the quick win I initially hoped for, but with the 3% dividend, and an overall haven style stock (being a consumer staples company), I'll hold the position for now.


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