Earnings Play: Campbell Soup
Jason Lubin December 9, 2020 12:15 AM
Look for a bounce off of the lower trendline of the rising channel.
On Wednesday, before market, Campbell Soup (CPB) is expected to report first quarter EPS of $0.78, in line with last year on revenue of approximately $2.3 billion vs. $2.2 billion a year earlier. The company manufactures branded food products and on December 1st, GENYOUth and Campbell's Chuncky announced the Chuncky Million Meals Challenge Madden NFL 21 tournament, which will be played in EA Sports Madden NFL 21 and provide 100 million meals to school-aged children during the Covid-19 pandemic.
Technically speaking, on a daily chart, Campbell's stock price is currently falling within an intermediate-term bullish channel that began to form in early-September. The RSI is below 50 and headed downward. The simple moving averages are arranged in a mixed manner, the 20-day is above the 50-day SMA and the 20-day is just below the 200-day SMA, which is moving sideways. Price will likely fall towards the lower trendline of channel as a result of price breaking below a short-term support zone (purple rectangle). If price can halt at the lower trendline or possibly the 47.00 support level, then traders should look for consolidation followed by a rally back towards 50.75. If price gets above 50.75 and the upper trendline then 52.50 would be the next target. On the other hand, if price fails to be supported at the lower trendline and slips past 45.50, then price could tumble further.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.