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

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 

Don't Ignore This Chart

Centene Moves to Recapture 50-day SMA

by Arthur Hill

Centene (CNC), which is part of the healthcare sector, sports a steady uptrend over the past year and recently surged towards its 50-day SMA. First and foremost, the long-term trend is clearly up because the stock recorded a 52-week high in January, the 50-day SMA is above the 200-day SMA and price is above the 200-day SMA.  The stock fell back in early February and moved below the 50-day SMA. Even though this may seem short-term negative, it is still viewed as a correction within a bigger uptrend. This means the pullback may present more of an opportunity than a threat.  Read More 

Don't Ignore This Chart

Newmont Mining Sets Up

by Greg Schnell

Newmont Mining (NEM) has been subtly building a trend of higher highs and higher lows. It is set up for a move now. The Full Stochastic indicator looks like it is bottoming at 50 % which usually happens when strong stocks pull back. With the price in such a narrow range the decision is coming soon. The recent breakout to 52 week highs and then a failure to hold the breakout was concerning. But it could not go on to make a lower low. This suggests to me the upcoming move is to the upside. My stop would be close at $36.85. There is something Read More 

Don't Ignore This Chart

Momentum and Money Flow Take a Turn in LabCorp

by Arthur Hill

Laboratory Corporation of America Holdings (LH) is looking bullish as the Moving Average Convergence Divergence (MACD) turns up and Chaikin Money Flow pops.  On the price chart, the long-term trend is up because LH hit a new high in January, the 50-day EMA is above the 200-day EMA and price is above the 200-day EMA.  The stock led the market with a 20+ percent gain from mid-November to late January and then consolidated after the February plunge. A triangle is taking shape and the stock is challenging the upper line already this week.  Read More 

Don't Ignore This Chart

Vertex (VRTX) Makes A New Vertical

by Greg Schnell

Vertex Pharmaceuticals (VRTX) pushed to a new all time high Friday to close out the week. The stock has been in a general uptrend for years. After consolidating for a few months, the stock price moved sharply higher. With the SCTR moving back above 75 and a fresh breakout, it is one of my favorite setups. The biotech sector continues to outperform so this breakout helps continue the relative strength. If the breakout fails to hold above $170, there is a good reason to be stopped out there. This is the third attempt to breakout which looks likely to hold as it keeps persisting. Read More 

Don't Ignore This Chart

Doctor, Doctor! Are You There?

by Greg Schnell

One of the most interesting things about new IPO stocks is how they behave technically. Some stocks soar and plummet all in the first six months. This particular stock Teladoc (TDOC) did too. It soared on the opening day and worked itself higher for one month, almost doubling. Then it let it all go and dropped well below the IPO price of $19. The lows came in at $9. Ouch! But since then, the stock has made a steady recovery. The reason it makes the list for this week is the chart recently broke out to all-time highs! Technically everything is in sync. The SCTR is surging into Read More 

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