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

Nike, Skechers Lead Rally In Footwear Stocks

by Tom Bowley

Skechers (SKX) rallied approximately 40% after its most recent quarterly earnings report and Nike (NKE) has gone from 2017 lows to nearly a 2017 high in the past five weeks, highlighting a significant rally in the Dow Jones U.S. Footwear Index ($DJUSFT).  The DJUSFT rallied 3.21% on Friday alone and is on the verge of a very significant breakout: The DJUSFT is heavily weighted toward NKE and you can see that in the chart above.  NKE's major price resistance level is 60 and a breakout with confirming volume would be extremely bullish for the entire industry group. Read More 

Don't Ignore This Chart

Fox (FOXA) Pounces On Six Month Highs

by Greg Schnell

21st Century Fox (FOXA) has been creating the news the last few weeks with merger, acquisitions, and parts spinoffs all part of the discussion. It closed the week at six month highs and above an important 5-year support and resistance line.  With all of this smoke, there must be a little fire behind the scenes, but this resistance area is extremely important for the stock as it has been dead money for years. Last week it made new 52-week lows only to suddenly reverse to 6-month highs.  If there is real movement behind the scenes this could break the Read More 

Don't Ignore This Chart

Western Digital Breaks Out of Continuation Pattern

by Arthur Hill

Western Digital (WDC) appears to be emerging from a consolidation pattern and this increases the chances of new highs in the coming weeks. The chart shows WDC hitting a new high in July and then falling with a rather sharp decline into early August. The stock immediately rebounded after this decline, but then traded sideways as a triangle formed. This triangle is basically a consolidation within an uptrend and a breakout means the bigger uptrend is continuing. Note that the 50-day EMA has been above the 200-day EMA for over a year now. WDC struggled to break the triangle trend line in late Read More 

Don't Ignore This Chart

General Electric Short Circuits (GE)

by Greg Schnell

General Electric (GE) has been struggling recently and now the stock dipped to two years lows. For such a blue chip institutional stock, the price action faltering while the overall market is in a big bull trend is almost shocking. With the investor day, GE announced asset sales and a dividend cut. The investors short circuited and hammered the sell button. While all this is new, the real question is when will investors find the stock low enough that good value is showing up? The stock has been dead money for 20 years. For an institutional stock, this price action is horrific. It will Read More 

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Fortinet Bids to End Long Correction

by Arthur Hill

Stocks close to new highs are usually in uptrends and have a good chance of recording new highs in the near future. Fortinet looks poised for a new high as challenges a channel line after an upturn last week. First and foremost, Fortinet is in a long-term uptrend with the 50-day EMA above the 200-day EMA and a 52-week high this summer. The stock peaked in early July, but has been pretty much flat since June with the blue lines marking a correction. Corrections can sometimes overstay their welcome by extending longer than we expect. Nevertheless, I try to keep the bigger picture in mind and Read More 

Don't Ignore This Chart

Want To Know When To Sell? Terex Is A Perfect Example

by Tom Bowley

In September, Terex Corp (TEX) saw big volume accompany a breakout of a bullish rectangular consolidation phase.  After weeks of trending higher, momentum began to slow and TEX printed a "death" candle - a shooting star on big volume to end the uptrend.  If there's one signal that screams at me to sell, it's the combination of a negative divergence and a reversing candle on volume.  Look at the chart below: TEX is a great chart to teach Technical Analysis.  There's a clear uptrend leading to a top in early August.  Then we see a continuation pattern and Read More 

Don't Ignore This Chart

Proctor and Gamble (PG) Prints An Outside Reversal

by Greg Schnell

Procter and Gamble (PG) printed an outside reversal this week right near the lower Keltner channel line. While the chart of Proctor and Gamble is trending higher, it's always important to find a nice entry. This week fits the criteria with a couple of indicators drawing our attention. First of all, this is typically as weak as PG gets compared to its peers on the SCTR indicator. Secondly, the full stochastic dipped below 20 and looks set to rise here. Most of the signals off the full stochastic were profitable. On the price panel, the reversal was right near the lower Keltner Read More 

Don't Ignore This Chart

Selling Allows PNC Financial To Unwind For Solid Reward To Risk Trade

by Tom Bowley

While it would be great for the stock market to rise every day without any selling whatsoever, that's just not practical.  As a trader, I await episodes of selling to set up much better reward to risk trades in stocks that remain in long-term uptrends.  Enter PNC Financial (PNC).  On October 13th, PNC reported revenues ($4.13 bil vs. $4.11 bil) and EPS ($2.16 vs. $2.13) that beat Wall Street consensus estimates and that's helped PNC lead the banking group higher.  But the selling the past few trading sessions has now set PNC up as a potential trade: Slowing Read More 

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Fiserve Shows Resilience with Move into Gap Zone

by Arthur Hill

Fiserv gapped down and fell on big volume last week, but the candlestick points to an accumulation day and the Accumulation Distribution Line hit a new high. First and foremost, the big trend is up because Fiserve hit a 52-week high with a move above 130 in late October. FISV then gapped down with an open around 124 and closed lower on the highest volume of the year. Despite the lower close, I think this was an accumulation day because the stock dipped below 121 during the day and closed near the high of the day. This candlestick looks like a massive hammer and the ability to close near Read More 

Don't Ignore This Chart

ConocoPhillips (COP) Makes New Two Year Highs

by Greg Schnell

ConocoPhillips (COP) has been on a roll since July, but this week it broke out to new two-year highs. The oil stocks are well positioned to go on a roll. I detailed this in the Commodities Countdown Video Recording 2017-11-02. The COP chart above has a couple of textbook signatures. The MACD has moved back above the zero line. The Full Stochastics have moved above 80 which is excellent and the SCTR ranking has headed into the top quartile above 75. In early October, the 10 Week crossed above the 40 week moving average for a positive alignment and this looks set to Read More 

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