Don't Ignore This Chart

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About this blog: The blog contains daily articles with intriguing or unusual charts selected by one of our Senior Technical Analysts, along with a short explanation of what exactly caught their attention and why they believe the chart is worth noting.

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Don't Ignore This Chart

Is Now The Time To Jump In F5 Networks?

by Tom Bowley

F5 Networks (FFIV) has a seasonal history of performing extremely well in October and November, but technically the stock has been a wreck since topping in March 2017 and the early October returns haven't been very good either.  There is hope, however, in the form of upcoming price support and it appears as though longer-term weekly momentum could be turning as well.  Check out this weekly chart: While price support and an improving MACD might suggest a potential reversal is approaching, those red arrows don't lie.  Since March, each time that FFIV has risen to test its Read More 

Don't Ignore This Chart

Lithium ETF (LIT) Looks Bearish

by Carl Swenlin

This morning I saw a commercial for the Global X Lithium ETF (LIT), and I thought, "Hmmm, lithium . . . batteries for iPhones, MacBooks, etc." So I pulled up a chart of LIT, and all kinds of things jumped out at me. First I saw the parabolic advance that got so steep it collapsed. Next there is the snapback rally that had price back to the previous high, at which point it backed off to form a double top. The PMO formed a negative divergence, which compares equal price tops to a lower PMO top. The OBV has formed a reverse divergence, which Read More 

Don't Ignore This Chart

One of the Weakest Stocks in the S&P 500 Looks Set to Get Even Weaker

by Arthur Hill

The S&P 500 is near all time highs and we are in a bull market, but Advance Auto Parts (AAP) did not get the memo and recent signals point to new lows. First and foremost, the long-term trend is down because the 50-day SMA is below the 200-day SMA and the stock hit a new low in August. AAP bounced from this August low, but hit resistance near broken support and the falling 50-day SMA. Notice that a rising wedge formed and the stock broke the wedge line with a sharp decline the last four days. This break signals a continuation of the long-term downtrend and a move below the August low Read More 

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This Tech Company Just Broke Out Of Bullish Pattern With Rising SCTR

by Tom Bowley

While we've seen many indices, ETFs and individual stocks break out over the past several weeks, there are still many that are consolidating in bullish fashion and those, upon breakout, provide solid trading opportunities.  Enter DXC Technology Company (DXC).  Over the past two months, the S&P 500 has risen nearly 100 points (roughly 4%) while DXC has quietly consolidated and worked off short-term overbought conditions.  It's how the market works.  Leaders lead, consolidate, then lead again.  DXC's two month consolidation appears to have ended rather Read More 

Don't Ignore This Chart

RRG says you need to keep an eye on Small Caps!

by Julius de Kempenaer

The Relative Rotation Graph above shows the rotation of the three size indices that make up the S&P Composite 1500 index. Although the S&P 500 large cap index ($SPX) is still clearly on the right-hand side of the RRG, making very small rotations close to the 100-level on the JdK RS-Momentum scale some interesting moves seem to be playing out on the left-hand side of the plot. Large caps took over from small- and mid-caps in April and the preference has been for $SPX since and for the moment still is. But the Relative Rotation Graph of Read More 

Don't Ignore This Chart

BlackBerry: Will This Rally Be Any Different Than The Last Several?

by Tom Bowley

Blackberry's (BBRY) demise from 2008 through 2012 has been well documented and I'm not really interested in dwelling in that past.  More recently, however, BBRY has attempted on multiple occasions to clear price resistance in the 11-12 range.  Clearing such resistance would be technically significant and further the case for buying BBRY.  Here's the current technical view: The blue circles above show that interest has definitely picked up in BBRY with volume the past six months much higher than at any point in 2016.  Also, the SCTR returning to the 90s is a very good Read More 

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Alphabet Turns up with Increase in Volume

by Arthur Hill

Alphabet, which some of you may know as Google, surged off a support zone with good volume and broke short-term resistance. This breakout could evolve into more because the big picture is also bullish. GOOGL advanced to a new high in May and then consolidated with a long consolidation. The blue trend lines converge slightly so we could call it a symmetrical triangle. Regardless, a consolidation after a 52-week high is typically a bullish continuation pattern and a breakout at 1000 would signal a continuation of the bigger uptrend. Short-term, the breakout in the 950-960 area is holding as Read More 

Don't Ignore This Chart

Airlines Begin Their Typical October Rally

by Tom Bowley

Airlines ($DJUSAR) absolutely "took off" in today's action as buyers emerged to drive nearly every airline higher.  Spirit Airlines (SAVE) surged 7.10%.  JetBlue Airways (JBLU) popped 7.08%.  Delta Air Lines (DAL) jumped 6.62%.  One fundamental reason for the group's strength was DAL's announcement that it reaffirmed its third quarter unit revenue and margin guidance, excluding the costs associated with Hurricane Irma.  Perhaps more important, however, is the simple fact that it's October.  While many are fearful this time each year because of famed Read More 

Don't Ignore This Chart

3M Holds the Breakout Zone $MMM

by Arthur Hill

3M (MMM) is helping itself and the Dow Industrials with a breakout in mid September. As a price-weighted average, the stocks with the highest price carry the most weight and MMM, which is the third highest-priced stock, accounts for around 6.5% of the Dow. On the price chart, the stock broke out of a triangle consolidation with a sharp advance in mid September and then fell back over the last two weeks. Prices are holding above the breakout zone (gray area) and this means the breakout remains bullish. Short-term, a small falling wedge formed and MMM is on the verge of breaking the upper Read More 

Don't Ignore This Chart

Two Bullish Charts In A Very Bullish Industry

by Tom Bowley

Delivery services ($DJUSAF) broke out of a bullish continuation cup with handle pattern a few weeks ago and appears poised for a further fourth quarter rally, albeit with some profit taking along the way.  Bullish continuation patterns require a prior uptrend and the DJUSAF certainly had that.  Check out the chart: Personally, I love to see the handle form back to the rising 20 period EMA, which is exactly what the DJUSAF did here.  Now that it's broken out, I expect to see bullish action in companies within this industry group.  Two companies that recently posted Read More 

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