Campbell Soup MacroThis is an add-on to my last campbell long chart because I didn't give enough info. I am not long here. I won't go long here. Because of the macro conditions, I think there may be another buying opportunity lower. If I miss the run from here, no sweat. I'm not riskin' nothing.
Let's take a look at the Campbell Soup monthly line chart. No need to get bogged down with candle patterns. We're just looking for future momentum / direction.
In 2017, we had a break of structure. It held the low there, and over the next months, it carved out a bottom. Then we got an upthrust which has held for years, besides one break of structure, which is a point of interest for me at $~40.00.
Logically, we want to claim direction. Bullish or bearish. That's how our brains think. But the wyckoff trader sees actions happening in slow motion, acting at points of interest. If I was more aware of this chart, I would have bought at $36.00 after it held for a few months. But it's a very slow moving chart, so it's not exciting. Therefore, I didn't give a shit.
What I believe will happen is this structure will break. If that happens, a good buy-in is anywhere between $32-$38. That's where I'll go long, and my target will be $73 LONG TERM, but I will push my stop loss up as we gain profit, until the trade is fully paid for.
Campbells
Campbells Long IdeaRange bound asset, Near the bottom of the range. Would not mind a small retrace for a more equitable trade TP at the .618 and top of the range. While there is Classic divergence playing out, a small retrace would help make the trade equitable. Would really like the entry if the price went to 45.84.
CPB - Double Bottom Breakout?Watching for entry on a breakout above the .5fib and a retrace support entry at 50.
I meant to publish this Friday EOD @47.53 but got sidetracked.
Initial Target = 618fib @54
Long-term hodl target = 786fib @60
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This content is for informational and educational purposes only. This is not in any way, shape or form financial or trading advice.
Good luck, happy trading and stay chill,
2degreez
Hormel Foods versus Campbell's Hormel Foods is an industrial scale grocery supplier. Similar footprint to that of Campbell's $CPB but with a lower OpEx and higher revenues.
Notably, the company trades at nearly 3x P/S versus Campbell's which trades at 2x P/S.
Both seem like logical, undervalued, consumer staples, though I would see a convergence in this price differential as we come closer to earnings.
Campbell's Soup - 0% for the year...Recent price volatility says a lot about human behavior, but the long term price chart for Campbell's is relatively lackluster versus others.
No doubt consumer staples and essential items are going to get a boost here with upcoming earnings in Mid-may.
Worth watching. Post-earnings, I'm looking for $53/share.
Tough timesWhen times are tough, we eat more soup?
Millennial's wouldn't know about tough times, so $CPB is not on their watch list!
Weekend Quickie #2 - Failed Strategy, Fake News, #dumpcampbells.How do you lose $393 million dollars in one quarter?
Step 1. Run social justice ads that don't work in the consumer staples space, and -
Step 2. Spend more money to put the same poor product in refrigerated and other higher-cost space.
How do you make things even worse?
Step 1. Say your profits are going to fall, and instead of being honest -
Step 2. Disseminate fake news blaming steel tariffs, rather than holding the company accountable for unpopular advertising and not producing legit, good quality products - and then paying up for higher-cost space.
Bonus points: Have your CEO abruptly step down.
That's what Campbell's did, and as a result, stock price was down over 12% on 5/18. Campbell's future is uncertain and there's likely still some downside momentum from a short-term technical perspective in addition to a longer, drawn out descent in price as CPB struggles to salvage its brand.
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See it on the site: holsturr.com/category/markets/charts/
** For speculative and research purposes - good luck! **
