Chart produced using Advanced GET End-of-Day

Subscribers will remember from our article of last July that amongst our predictions of various tech companies collapsing, we suggested that one very non-tech company, Campbell's Soup, was a buy around the $26 level. We saw Campbell's as a company with solid brand names, but bad PR, suspect management and execessive debt. As such, we thought it represented a likely takeover candidate -- the next to get swallowed up in this consumer foods sector after Best Foods. Technically, we also liked the Fibonacci appearance of Campbell's chart at that time.

Well, since that time, Campbell's has crept higher even as the broader equity indices headed significantly lower. New senior management was recently put atop the company, and the rumors are starting to swirl ever faster that the company is being spruced up for sale. As such we thought it worthwhile taking a short term look at the immediate chart pattern once again.

Although subscribers will remember basis the weekly chart that we saw a significantly higher upside price level for a possible takeover, the daily chart pattern suggests two levels of Fibonacci resistence to target more immediately in the short term -- the first, a minor one around $38 a share, and the second a more major one near 42 1/2. This second level also represents a gap that is likely to get filled.

So as the broader indices slowly turn upward this January, we think Campbell's is likely to continue poking its head higher. Campbell's earlier spinoff Vlasic Pickles may have just moved itself into bankruptcy, but we don't think the same will be the fate of this staple American brand-name. With such great divisions as Pepperidge Farm, Godiva, and V-8, Campbell's will get swallowed up. It's just a question of by whom, how soon, and how high.

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