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

This Pharmaceutical Company Is Looking For Ignition

by Greg Schnell

Pharmaceutical companies have to do a lot to get their technologies off the ground.There are many major risks along the way and many companies falter. Rocket Pharmaceuticals (RCKT) is a great chart and this week it makes it onto the Don't Ignore The Chart list. First of all, the Rocket Pharma stock is unaware of all the volatility seen in the stock market in February and March. It has held in a very tight range and closed very close to the 52-week highs.  But the chart setup is even more interesting. After the IPO, the stock traded sideways for 5 months in 2015. It had a Read More 

Don't Ignore This Chart

Pfizer Bounces within Uptrend

by Arthur Hill

The pickings are slim as the market corrects and may charts turn ugly. I am noticing some strength in big pharma with Merck (MRK) up in March and Pfizer (PFE) holding above the early February low (so far).  The chart shows PFE with a zigzag uptrend since June. The stock surged to a new high in late January and then plunged back to the October low in early February. Price action remains a volatile as the stock bounces in this range.  I still consider the trend up because the 50-day EMA is above the 200-day EMA, the stock hit a new high two months ago and the 200-day EMA is Read More 

Don't Ignore This Chart

Another One Breaks Support

by Greg Schnell

It has been a wild start to the year, and we haven't finished the first quarter yet. Netflix now has a larger market cap than GE. Facebook is out of favor and Twitter is in favor. What's next? With all the wild price gyrations in the index, Tesla broke support today. So what is an investor to do with the changing market and Tesla. Well, Tesla has broken support 4 times in the last four years. It's easy in hindsight to identify which was the final bottom before moving up. It is very difficult in real time. The spike low in 2016 feels similar to the current spike low. The overall market Read More 

Don't Ignore This Chart

An RSI Failure Swing in Ross Stores

by Arthur Hill

The S&P 500 was shaken with a plunge below its 200-day SMA on Friday and this gives chartists a reference point to compare with other charts.  Personally, I do not think moving averages represent support or resistance levels. Moving averages provide price points that chartists can use to gauge the trend and compare performance.  The chart below shows Ross Stores (ROST) just below its falling 50-day SMA, but well above its rising 200-day SMA. This suggests that the medium-term trend is down and the long-term trend is up.  Read More 

Don't Ignore This Chart

Newmont Gets Some Strength

by Greg Schnell

The Gold stocks have been rallying this week. Gold sits about $20 below 52 week highs. Newmont (NEM) looks like it is changing direction by breaking the down trend. Notice the Relative Strength line is making new 5-month highs. The SCTR is also breaking out. The MACD is just turning up so there is lots of room above here. The Commodities Countdown also covers off numerous reasons why the precious metals looks good here. Good trading, Greg Schnell, CMT, MFTA Read More 

Don't Ignore This Chart

Maybe Its Not About Steel Tariffs

by Greg Schnell

Today, under the cover of tariffs and China trade, Deutsche Bank (DB) stock gapped down hard. The chart looks gappy because the main trading on DB is traded in Europe. The real problem here is that in the midst of a global expansion, why is a big bank making 52 week lows? The SCTR is at 2.1 suggesting 98 % of the large caps are behaving better than DB. When banks are below the 200 Daily Moving Average (200 DMA), in general, more caution should be applied. The bankers in NYC have told me when there is a problem, it will show up on bank charts. You won't know what the problem is, but Read More 

Don't Ignore This Chart

Small-caps Catch a Little March Madness

by Arthur Hill

The S&P SmallCap iShares (IJR) held up better than the S&P 500 SPDR (SPY) during last week's decline and small-caps are outperforming large-caps in 2018.  The chart shows IJR moving above its late February high with a surge above the blue zone in mid-March. The ETF fell back after this surge, but held above the rising 50-day SMA and did not close below the February high. SPY, in contrast, is below its late February high and its 50-day SMA.  Even though I cannot draw a picture-perfect wedge or flag, the throwback looks like a short correction after a Read More 

Don't Ignore This Chart

Put This On Your Dance Card?

by Greg Schnell

Payment systems had a fabulous year last year and the shape of the charts has been pretty good this year. Visa (V) looks great here.Visa just keeps banging its head on the the $125 level. The SCTR has started to push up in the last few days. The Relative Strength line has hit new 52-week highs suggesting more upside. With the 50 period moving average trying to support the stock, I would keep $120 as a stop. There are some opportunities being shown after this recent dip. Believe it or not, Energy had some nice moves in individual names today.  Read More 

Don't Ignore This Chart

Investors Cut the Cord on Disney

by Arthur Hill

Dow component Disney (DIS) is feeling the heat today with a triangle break and move below the 200-day moving average.  Disney has been one of the weaker stocks in the Dow Industrials over the last few years. The stock peaked way back in August 2015 and formed lower highs the last 2+ years. Most recently, the January high peaked below the April 2017 high.   The stock appears to be breaking down with the third move below the falling 200-day SMA and a triangle break. This is not the most symmetrical or picture-perfect triangle, but the shaded area marks a consolidation and Read More 

Don't Ignore This Chart

When Rental Cars Start Flying

by Greg Schnell

Avis / Budget (CAR) is finally breaking out of a long term horizontal move.  Recently it pushed above $42 and went sideways. At this point, the consolidation after breaking out looks like it is ready to accelerate to the upside. The SCTR ranking looks good. The new high in Relative Strength is shown in purple. The price action is really starting to turn higher. If your looking at a rental car, you may chuckle that the insurance per day is more than the car rental fee per day. But so far this profit margin appears to be turning the tide Read More 

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