Campbell Soup Co. (CPB) reported fiscal third-quarter results here on Wednesday morning that beat earnings estimates and were in line with revenue numbers. Let's check out the charts and indicators of the iconic food producer to see if we should buy or sell its stock.
In this daily bar chart of CPB, below, I see a weak technical setup. Prices rallied into a high in December. Prices corrected down to the rising 200-day moving average line and rallied again. This second rally failed to make a new high and CPB weakened in May to break below the 200-day line. The slope of the 50-day moving average line is now negative. The daily On-Balance-Volume (OBV) line shows weakness from December. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but trying for a cover shorts buy signal.
In this weekly Japanese candlestick chart of CPB, below, I see a potential weak picture. Prices are now trading below the cresting 40-week moving average line. The weekly OBV line shows weakness from April. The MACD oscillator has been weakening all year and stands just slightly above the zero line.
In this daily Point and Figure chart of CPB, below, I can see a potential downside price target in the $46 area.
In this second Point and Figure chart of CPB, below, I used weekly price data. Here the software suggests a $46 price objective.
Bottom line strategy: The charts and indicators of CPB have been weakening for some time now. I expect further weakness in the weeks ahead. Avoid the long side of CPB.
