Campbell's ready to pop!

11 May

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.

15 May

Not

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

tradingview.com/news/DJN_DN20240515005440:0/

16 May

Not

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!

24 May

Not

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.