The iconic Campbell Soup Co. (CPB) will report earnings on Wednesday and was highlighted Friday night by Jim Cramer during his Mad Money program. Let's put some soup and maybe a sandwich up for lunch and check out the charts and indicators.
In this daily bar chart of CPB, below, we can see that prices have traded sideways the past 12 months and the overall pattern looks a little like my last EKG. CPB has crisscrossed the 50-day and 200-day moving averages several times.
The On-Balance-Volume (OBV) line has moved sideways from May and tells a story of balance between buyers and sellers of CPB.
The Moving Average Convergence Divergence (MACD) oscillator has crossed the zero line many times in the past year and tells us that this pattern lacks sustained strength.
In this weekly Japanese candlestick chart of CPB, below, we see a bearish picture. Prices have traded sideways the past year but we can see a number of upper shadows telling us that traders have been rejecting the highs for weeks and weeks.
The weekly OBV line shows a decline from March to now which suggests that sellers of CPB have been more aggressive and have liquidated long positions.
The MACD oscillator is at the zero line and is likely to generate a sell signal.
In this daily Point and Figure chart of CPB, below, we can see that the software is projecting an upside price target in the $58 area. A trade at $44 will likely weaken this chart.
Bottom line strategy: The weather is turning cold in the Northeast and no doubt soup consumption will be on the rise. Despite my love of soup (a staple in my childhood household even during the summer), the charts of CPB look weak and vulnerable. Avoid the long side.