On Mad Money Wednesday night, Jim Cramer sat down with Mark Clouse, president and CEO of Campbell Soup Co. (CPB) , the packaged foods maker that's seen a resurgence as consumers stock up their pantries with old favorites during the Covid-19 pandemic.
Clouse said they saw an initial surge of pantry restocking but consumers are spending more time at home and as they cook more, they need more of the ingredients Campbell provides.
Let's check out the charts of CPB.
In the daily bar of CPB, below, we can see that prices did not follow the script of the broader market this year. Prices dipped a little in late February but actually rallied to new highs twice (yes twice) in March. Prices whipsawed investors by making a new low in late March before firming yet again in April. CPB is now above the rising 50-day moving average line and above the rising 200-day moving average line.
The daily On-Balance-Volume (OBV) line was by comparison very steady and strong the past four months and through the price jiggles buyers of CPB have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is at a new high above the zero line.
In the weekly bar chart of CPB, below, we can see that prices bottomed in 2018-2019 and started an uptrend. Prices are above the rising 40-week moving average line.
The weekly OBV line is overall constructive and the MACD oscillator is above the zero line and crosses upward to a new buy signal.
In this first Point and Figure chart of CPB, below, we used daily price data. Here the chart is projecting a small downside price target of $48.
In this second Point and Figure chart of CPB, below, we used weekly price data to make the X's and O's. Here the chart suggests a price target of $64 -- a new high.
Bottom-line strategy: A dip to the rising 50-day moving average line or to the $48 Point and Figure target looks like a buying opportunity. Risk a close below $46 and let's put our sights on $64 as a price objective.