Stocks: The Good, The Bad and The Ugly
52-week highs, 52-week lows and some bad looking cyclicals
This week we’re keeping it simple and reviewing the stocks within the S&P 500 that hit 52-week highs yesterday, those that hit 52-week lows and a few bad looking cyclical charts that should be avoided.
Conagra is first up on our list and its 52-week high also comes with a breakout on the relative chart. Don’t get too bulled up though. While this is nice breakout from an 18-month base, $39 has capped this stock no less than six times going back to 2017, so we need to see it prove it can make it through that historical overhead supply.
Cigna has been a staircase up for more than a year, so this isn’t a stock to bet against. However, RSI-14 momentum is negatively diverging as it tries to break through its November highs, heightening the risk of a near-term pullback. The green uptrend line needs to stay intact if you are long, but pullbacks to it should be a chance to add.
CPB: Campbell Soup
I’ll sprinkle in a little fundamentals here, since I caught Walmart CEO Doug McMillon say Tuesday that he expects to see double-digit inflation in dry foods “around for a while”. Add in an earnings and revenue beat before the bell on Wednesday and you’ve got Campbells Soup spiking 6% yesterday. 2022 is just different huh? This is a great looking breakout and comes with new relative highs as well.
GIS: General Mills
General Mills has been as strong of a stock as you can find outside energy this year and is staying consistently overbought. Currently at 16% above its 200-dma, this is pushing the upper bound of what it has been able to achieve over the past decade, but this is a relative leader that looks buyable on pauses and pullbacks.
SJM: JM Smucker
SJM has arguably already broken out of this giant base but needs to clear the $157 level to fully complete the picture with an all-time highs. Relative strength is accelerating again above a rising 200-dma and this looks like a timely long.
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