Campbell Soup Co. had a sharp rise from $34.30 (U.S.) to $48.83 in early-2013 (A-B). In May of that year, the stock started a roughly one half correction of the previous rise (C) and then stayed in a horizontal trading range between $41.50 and $46.50 (dotted lines). Recent price action above the top of the range indicates renewed investor interest and the start of a new up-leg (D). Behaviour indicators including the 40-week moving average (40wMA) confirm the positive status. Only a decline below $44.50-$45 would be negative. Point & Figure measurements provide targets of $54 and $59. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
