Conagra Brands ( CAG) is due to report their latest quarterly numbers on Thursday. Jim Cramer told his Mad Money viewers Friday night that there are far more exciting places to be than Conagra, the consumer packaged goods holding company.
Let's check out the charts and technical indicators of CAG.
In this daily bar chart of CAG, below, we can see a wide sideways trading range market the past 12 months. There is a rally from January to early June followed by a decline to slight and temporary new lows in August. Prices have rallied back above the 50-day moving average line but remain below the 200-day line.
The On-Balance-Volume (OBV) line declined into early August but has begun to improve, telling us the period of aggressive sellers is over and now traders are becoming more aggressive buyers.
The Moving Average Convergence Divergence (MACD) oscillator has improved enough to cross back above the zero line for a buy signal.
In this weekly Japanese candlestick chart of CAG, below, we can see that CAG has struggled above $38 several times over the past two years. The most recent candle pattern shows a large upper shadow above $34 as traders rejected those prices. Prices are trading below the declining 40-week moving average line.
The weekly OBV line has been soft the past four months and the MACD oscillator is in sell mode below the zero line.
In this daily Point and Figure chart of CAG, below, we can see a potential upside price target of $39.
In this weekly Point and Figure chart of CAG, below, we can see a lot of price history. This chart suggests $50 is the upside target after $39.
Bottom line strategy: I have no special knowledge of what CAG could report on Thursday but I can suggest a bullish strategy. Traders could go long at current levels risking to $32.50. $39 and then $50 are our price targets.
