(Premium) April Consumer Staples Outlook

During bear markets, Consumer Staples tend to outperform. That’s what we saw all throughout 2022. Just a few short days into the new year, though, Staples failed to hold relative support, and subsequently gave up a year’s worth of outperformance in about a month’s time.

The sector is now positioned neat the middle of a 10-month range and hovering near a flat 200-day moving average. That offers very little in the terms of risk-reward opportunity, and no reason for us to alter our neutral rating.

Despite the lack of outperformance for the sector overall, new highs continue to pop up. Lamb Weston has been a staple of our monthly outlook for awhile now, and the stock continues to work. We still like it with a target of 125. Near term support lies at the 2020 highs of 96.

Hershey also continues to be a relative leader. After it finally broke out above resistance at 245, we’re eying a long-term target of 325, which is the 423.6% Fibonacci retracement from the 2019-2020 decline.

Clorox is far from setting new all-time highs, but it could be nearing the start of a new uptrend after spending 2022 working on a rounded bottom. First, it needs to clear 160. If it does, we’ll have a near-term target of 188.

View the rest of our April outlook:

April Technical Market Outlook 
(Premium) April FICC Outlook 
(Premium) April Information Technology Outlook 
(Premium) April Communication Services Outlook
(Premium) April Consumer Discretionary Outlook
(Premium) April Industrials Outlook
(Premium) April Financials Outlook
(Premium) April Energy Outlook 
(Premium) April Materials Outlook 
(Premium) April Health Care Outlook
(Premium) April Consumer Staples Outlook
(Premium) April Real Estate Outlook
(Premium) April Utilities Outlook 

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