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

NOK/JPY, a FOREX pair trade from RRG

by Julius de Kempenaer

Relative Rotation Graphs are not only used to look at sector-rotation or help with asset allocation decisions but can also help you to pinpoint potential forex trades. Most currency traders are short-term orientated so the RRG above is a daily chart showing the rotation of the Norwegian Krone and the Japanese Yen vs the US dollar. You can easily re-create this chart by selecting the pre-defined group "G10-FX USD base" from the drop-down box on the RRG page and set the interval to daily. The chart will show all G10 currencies related to the USD. Ie, 9 currencies Read More 

Don't Ignore This Chart

Alibaba Keeps Trying To Hold The Breakout (BABA)

by Greg Schnell

Alibaba has been consolidating for about 9 months after a huge climb in 2017. Friday marked a fresh surge out of a small base around the 200 day moving average. The relative strength has been flat since August of last year. This is shown in the purple area chart. This means that the stock is performing in line with the $SPX, rather than outperforming the index like it was on the left side of the chart. This location on the chart has some benefits for taking a long position on Alibaba (BABA). First of all, a stop around $187 would suggest the stock is not done consolidating yet. This means Read More 

Don't Ignore This Chart

Medtronic Looks To Have The Right Tonic (MDT)

by Greg Schnell

Medtronic (MDT) is a great example of a stock continually retesting the highs. Usually when these patterns break, there is a significant upside move. Medtronic has a two year ceiling that it is fighting to break through. After breaking the downtrend in momentum on the PPO, the chart shows a flat PPO wave currently. If the stock can finally push through this resistance, there is a good chance the price action can run significantly.  Why is that? Well, when the price is above previous highs, everyone who owns the stock is in a profitable position and no one really wants to sell now Read More 

Don't Ignore This Chart

I just picked GE from the Relative Rotation Graph of most active stocks in the S&P 500

by Julius de Kempenaer

A good start of the day, at least for me is to go to the StockCharts.com dashboard and look at the Top 10, most active, market movers, in the S&P 500 index. The table gives a quick idea of what has happened the previous day. From there I open up the (daily) RRG for this universe to see if any of these tickers are showing meaningful rotational patterns. This RRG shows the stocks that showed up this morning and the one that caught my attention is GE. Well inside the improving quadrant at roughly a 30-degree heading and close to Read More 

Don't Ignore This Chart

Infosys (INFY) Sprints To New Highs

by Greg Schnell

Infosys (INFY) Is breaking out to new highs this week. Last week it closed in new high territory even while the overall market was pulling back. Nice to see the relative strength. Now it is continuing to power higher as the overall market seems to be trying to rally into earnings. The SCTR at 96 suggests a very strong stock. The full stochastics indicator is high because the stock is at a new all time high. That doesn't mean it needs to be sold. With no overhead resistance, this stock could continue to run.  I produced another edition of The Final Bar Read More 

Don't Ignore This Chart

Wide rotation for ALGN on RRG

by Julius de Kempenaer

This (DAILY) Relative Rotation Graph shows the rotation of the Health Care stocks against their XLV benchmark. One stock really stands out because of its wide rotation.  ALGN crossed over into the leading quadrant, from improving, last May and sharply moved higher on the price chart since then while building up a solid uptrend in relative strength. This push higher lasted until roughly mid-June when price and RS peaked roughly at the same time. On the Relative Rotation Graph, the tail of ALGN rolled over and started Read More 

Don't Ignore This Chart

Royal Gold (RGLD) Tries To Make New Highs

by Greg Schnell

I fully realize how beaten down the price of Gold is. What makes this chart more interesting is that it has been climbing even well Gold has gone lower. So not only does it have technical strength relative to Gold, it is also starting to outperform the $SPX. This is shown by the rising line on the purple area chart. One other clue I like is the SCTR is moving above 75 suggesting the price action is becoming one of the top performing stocks. If this stock pushes to new highs next week, it is well set up for the move. The price is consolidating just under Read More 

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A Sale At Starbucks (SBUX)

by Greg Schnell

Have you ever had a friend say they wanted to get into a stock because it was on sale? While shoppers love the word SALE, it does not always mean value. In this case it's Starbucks. Once again, the stock fails as Howard Schultz retires. With new store openings in China at a rate above one a day, it's crazy to believe the chart could be breaking down. But it is. The RSI says it is entering a new bear market. The full stochastics don't look ready to turn higher any time soon. The PPO has just crossed below zero which suggests staying away until it can Read More 

Don't Ignore This Chart

Oil & Gas Equip & Services SPDR hits Reversal Zone, but Lags Oil

by Arthur Hill

The Oil & Gas Equip & Services SPDR (XES) is trading near a potential reversal zone, but the ETF is not keeping pace with strength in oil. The first chart shows XES, the Light Crude Continuous Contract ($WTIC) and the Correlation Coefficient for the two. XES bounced between 13 and 19 over the past year and is currently just above the midpoint of this range. Perhaps there is a slight uptrend at work here. Performance wise, XES is up around 13% over the past year and oil is up a whopping 60%. In contrast to the weak uptrend in XES, oil is in a strong Read More 

Don't Ignore This Chart

$NYA Chart Cracks To Start The Week

by Greg Schnell

Everyone still believes this bull market has a lot more legs. While the large-cap technology stocks dominate the weighting in the big indexes, the $NYA chart has been an important chart for timeliness for the overall picture in recent history. Even more important perhaps is the last two trend lines broke around the end of June. The chart above is a weekly chart and the week closes on Friday, not Monday. It is important to watch price action closely over the next few days. Friday also brings the End of Day, End of Week, End of Month, End of Quarter data point for the markets Read More 

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