June 7 Chart of the Day - Campbell Soup
Mmmmm..... Mmmmm..... Maybe....
Campbell Soup (CPB) beat Wall Street estimates for third-quarter profit on Wednesday as the maker of Pepperidge Farm cookies benefited from several quarters worth of price hikes.
However, shares of Campbell plummeted falling about 3% in premarket trading, after the company also maintained its annual sales and profit forecasts - a decision that some analysts attributed to a "prudent level of conservatism".
The company's average product selling price rose 12% in the quarter, but a 7% decline in total volumes signaled that Americans pressured by rising food prices were moving away to private-label products that are more affordable.
As such, Wall St punished the stock price while management talked about fundamentals and the future.
But technically speaking nothing is broken and with the stock price dropped reached some potential support levels.
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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