The American processed food and snack company, Campbell Soup Company (NYSE: CPB) seems to be getting ready for a price bump according to the charts.

Bullish Move – Chart Indications

#1 Channel Breakout: As you can see from the daily chart, the stock was trading within a channel for the past several weeks. This is shown in pink color. The stock had typically taken support at the lower rail of the channel before bouncing back. The stock has currently broken out of the channel with high volume, which is a possible bullish sign.

Daily Chart – CPB

#2 Trading Above MAs: The stock is currently trading above its 50-day as well as 200-day SMA, which implies that the bulls are currently in control.

#3 Bullish ADX: The ADX line has started to move up from below –DI and +DI lines.

The +DI line is also currently above –DI line.

This indicates possible bullishness.

#4 MACD above Signal Line: The MACD (light blue color) is currently above the MACD signal line (orange color) in the daily chart.

This typically indicates a bullish setup.

#5 Bullish Stochastic: The %K (blue) line of stochastic is currently above the %D (Orange) line in the daily chart. This is a possible bullish indication.

#6 IH&S Pattern: From the weekly chart, we can see that the stock has been consolidating in the form of an Inverted Head and Shoulders (IH&S) pattern. This is marked in the chart in pink color. An IH&S pattern is a bullish pattern. A breakout from an IH&S pattern is usually the sign of an upcoming bullish move. Currently, the stock has broken out of the IH&S pattern, indicating possible bullishness.

Weekly Chart – CPB

#7 Bullish ADX and DI: The ADX indicator shows bullishness in the weekly chart because (+DI) is greater than (-DI), ADX is above (-DI), and ADX has currently risen above both (+DI) and (-DI). The stock is also trading above its 50-week as well as 200-week SMA. All these indicate possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, you can purchase the shares of CPB above yesterday’s close. This translates to a price above $52.85.

TP: Our target prices are $60 and $70 in the next 3-6 months.

SL: To limit risk, place a stop loss below $48.10. Note that the stop loss is on a closing basis.

Our target potential upside is nearly 14% to 32% in the next 3-6 months.

For a risk of $4.75, our target rewards are $7.15 and $17.15. This is a 1:2 and 1:4 risk-reward trade.

In other words, this trade offers almost 2x to 4x more potential upside than downside.

Risks to Consider

The stock may reverse its overall trend if it breaks down from the channel and goes below it. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.

Happy trading!

Tara

320 hedge funds just sold this stock [sponsor]
A strange force has seized control of Wall Street. Hedge funds are already moving their money… and preparing for even stranger days ahead. Over 320 hedge funds have quietly sold THIS famous stock - to prepare for a dramatic market shift. Get the strange truth from a 50-year Wall Street insider... including the name and ticker of the stock hedge funds are selling hand-over-first.