We reviewed the charts of Campbell Soup
) on March 8 and we liked them. We said, "Traders who went long CPB from our December review should continue to hold those positions. Raise stops to $42 from below $40. Add to longs above $47. The $58-$60 area is our price objective."
Let's take out a spoon and give another look.
In this daily bar chart of CPB, below, we can see that prices dipped to the $42 area in the middle of March, so traders may have been stopped out depending on what they did. CPB has been firming since the middle of March. The daily On-Balance-Volume (OBV) line shows improvement and the Moving Average Convergence Divergence (MACD) oscillator crossed to the upside for a cover shorts buy signal and is not far from crossing above the zero-line and an outright buy signal.
In this weekly Japanese candlestick chart of CPB, below, we can see a bottom reversal pattern in March. Prices are trying to hold above the declining 40-week moving average line. The weekly OBV line shows positive action from August. The MACD oscillator is just slightly above the zero-line.
In this daily Point and Figure chart of CPB, below, we can see that the software continues to show an upside price target in the $58 area.
Bottom line strategy: If you are still long CPB, then continue to hold, but use a $41 sell stop. If you are flat, you could go long CPB at current levels or on strength above $46.
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