Conagra Brands is ramping today. Shares are up 6% following a blow out earnings report: https://www.marketwatch.com/story/conagra-brands-shares-jump-6-premarket-after-earnings-blow-past-estimates-2020-06-30?mod=mw_quote_news.
This powerful move is driving the stock back up to heavy resistance near the 2019/2020 highs($35.50). Heading into today’s breakout move CAG has been tracing out a narrow consolidation pattern since the initial rebound off the March lows ran out of steam. During this eight week phase the stock was able to work off a rather extreme overbought reading(daily MACD) without giving back much ground. With layers of support now in place(multi week June highs) CAG is set up well for a fresh leg higher. A clear take out of the $36.60 area could spark quite a run.
We are long CAG in some managed accounts.