Stocks: The Good, The Bad and The Ugly

52-week highs, 52-week lows and some bad looking cyclicals

Good morning!

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.

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52-week highs

CAG: Conagra

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.

CI: Cigna

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.