Earnings Play: Campbell Soup
Jason Lubin September 2, 2020 11:10 AM
Possible bounce play off of 50.50.
On Thursday, before market, Campbell Soup is expected to release fourth quarter EPS of $0.61 compared to $0.50 the prior year on sales of approximately $2.1 billion vs. $1.8 billion last year. The company manufactures branded food products and its expected move based on front-month options is 6.3%. The last time the company reported earnings it fell 6.1% after missing the EPS estimate.
Looking at a daily chart, Campbell's stock price is currently pulling back after hitting resistance at 54.00. The RSI is sitting just above 50. Price will likely find support at its old resistance level of 50.50 and bounce. If price bounces, chances are that it will retest the 54.00 resistance level, break through it and continue rising towards 57.50. However, if price cannot manage to hold above 50.50, it could fall back to the 49.00 support level, where a rebound may occur as it is close to the 200-day moving average. If price falls below the 49.00 support level, it would be a bearish move that could signal a new short-term downtrend.
Source: GAIN Capital, TradingView
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