Earnings Play: Campbell Soup

Possible bounce play off of 50.50.

Uptrend 3

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

More from Earnings

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.