Campbell Soup (CPB) has slowly corrected about two-thirds of its November to February rally. Prices are trying to make a higher low and a higher high to start a fresh uptrend. CPB is testing the declining 50-day and 200-day moving average lines, which is a start, but there are more clues.
In this daily bar chart of CPB, below, we can see the position of the moving averages mentioned above. The daily On-Balance-Volume (OBV) line has been moving up since early April and the Moving Average Convergence Divergence (MACD) oscillator crossed last month to a cover shorts buy signal. Further price strength could push the MACD oscillator above the zero line.
In this weekly chart of CPB, below, we can see how prices are testing the declining 40-week moving average line. It will not take much of a rally for prices to close above this line. The weekly OBV line has been saw-toothing slightly lower the past three months. The two moving averages that make up the MACD oscillator on this timeframe are narrowing toward a possible crossover and cover shorts buy signal.
Bottom line: Until it actually happens there can be a fine line between a bear market rally and lasting turn to the upside. CPB looks like it can make a turn higher.