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

S&P 500 in nose bleed area? ... Not from this perspective!

by Julius de Kempenaer

The Relative Rotation Graph above plots a number of world equity markets against the FTSE all-world index and shows their relative rotation around this benchmark. With all the chatter going around on the S&P 50o index camping in the nose-bleed area this gives a refreshing angle to look at the current state of world-affairs (at a stock market level that is ..). The markets on the right, inside the weakening quadrant, are Hong Kong ($HSI), Emerging Markets ($MSEMF), and China ($FTX). If you click on the chart and open the live version you can scroll back through Read More 

Don't Ignore This Chart

Ford Stalls before Making Next Move

by Arthur Hill

Ford (F) consolidated after a big advance and this consolidation looks like a bullish continuation pattern. First, industry group strength and the long-term uptrend are in Ford’s favor. Ford is part of the red-hot Global Auto ETF (CARZ), which is up over 20% from its April low and trading near a 52-week high. Long-term, Ford broke a big resistance zone in September and the 50-day EMA moved above the 200-day EMA in October. After a 19% -trend-reversing advance, the stock was entitled to a rest and this is exactly how a consolidation works. The trading range digests the gains, alleviates Read More 

Don't Ignore This Chart

Volume Confirms Breakout For WellCare Group

by Tom Bowley

WellCare Group (WCG) posted quarterly earnings that beat Wall Street consensus estimates and the stock soared above recent price resistance.  Volume surged as traders accumulated the healthcare provider.  The Dow Jones U.S. Health Care Providers Index ($DJUSHP) broke out recently and WCG has performed exceptionally well on a relative basis: WCG broke its down channel a couple of weeks ago and has seen its SCTR (StockCharts Technical Rank) rising ever since.  Tuesday's breakout was accompanied by the heaviest volume of 2017, suggesting that WCG is under accumulation.  Read More 

Don't Ignore This Chart

BroadCom Gets a Squeeze and Makes a Move $BRCM

by Arthur Hill

BroadCom looks set to continue its long-term uptrend with a breakout and fresh 52-week high. The chart shows BroadCom (AVGO) with Bollinger Bands, the Bandwidth indicator and the Percentage Price Oscillator (PPO). First, notice that the stock hit a 52-week high in July and the PPO(50,200,0) has been above zero all year, which means the 50-day EMA is above the 200-day EMA. The long-term trend is clearly up and this means our trading bias should be bullish. In other words, we should expect bullish resolutions to short-term setups.   The pink area Read More 

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When A Hammer Meets Gap Support

by Tom Bowley

I'm a big fan of candlesticks, particularly reversing candlesticks as they many times signal that a short-term downtrend has ended in an overall uptrending stock.  One of my favorite trading strategies is to trade strong stocks off gap support.  So what happens when both strategies meet?  Well, JD.com (JD) has both right now so its trading behavior over the next two weeks will be quite interesting as that's when it reports its next quarterly results.  Here's the current technical outlook: JD is well off its August high.  The stock had trended higher Read More 

Don't Ignore This Chart

The Divergence is Just Icing on the Cake for T-Mobile $TMUS

by Arthur Hill

T-Mobile is showing signs of life with an upturn off support and a positive divergence in RSI. As always, lets review the bigger picture before trying to make sense of current conditions. TMUS basically doubled from February 2016 to April 2017 with a 108% advance. This massive advance gave way to a pullback into July and the stock found support near 60. The 50-day EMA is above the 200-day EMA and the stock has been battling the 200-day EMA the last two months. Given the evidence, I would assume that the long-term trend is up.  Signs of life are Read More 

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Gold Miners Lose Price Support On Heavy Volume

by Tom Bowley

The Dow Jones U.S. Gold Mining Index ($DJUSPM) held price support on its late-September swoon, but that was not the case with the recent selling.  The reason?  It's probably the reverse head & shoulders breakout on the U.S. Dollar (UUP).  A rising dollar normally sends gold prices (and gold miners) lower.  Check out these recent technical developments: I'd be very careful with gold ($GOLD) and gold mining stocks unless, or until, neckline support on UUP is lost in the 24.40-24.50 area.  This reverse head & shoulders pattern is a bottoming formation Read More 

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A Healthy Reaction to Earnings Reinforces Support in LH

by Arthur Hill

Laboratory Corporation of America (LH) reported earnings today and surged above the 50-day moving average on the results. The trend since late July remains down, but recent price action is constructive and a breakout could be in the offing. The stock surged around 20% and hit a 52-week high in July. The 50-day moving average is above the 200-day and price is above the rising 200-day. Thus, the evidence supports a long-term uptrend. This indicates that the decline from July to October was a correction within a bigger uptrend. Notice how the stock retraced around 61.8% and formed a falling Read More 

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Biotechs Weak This Morning But Look To Be Reversing At Key Support

by Tom Bowley

The Dow Jones U.S. Biotechnology Index ($DJUSBK) broke out of serious longer-term consolidation when it cleared 1800 price resistance in mid-June.  Since then, we've seen a nice uptrend, characterized by rapid advances and steady pullbacks.  The group lost nearly 120 points from Friday's intraday high to today's intraday low, however, but is attempting to print a reversing hammer on its 50 day SMA support.  Check it out: I didn't annotate it on this chart, but the DJUSBT struggled recently (and back in July/August) after a negative divergence printed (higher price highs Read More 

Don't Ignore This Chart

US Bancorp Breaks out of Long Consolidation

by Arthur Hill

US Bancorp (USB) ended a long corrective period with an upside breakout and this breakout is holding. Note that USB is part of the Financials SPDR (XLF) and the Regional Bank SPDR (KRE). These two are up double digits over the last six weeks and this puts has sector and the industry group strength behind the stock. On the price chart, USB advanced some 50% from June 2016 to February 2017 and then embarked on a long consolidation period. Even though this consolidation seemed to overstay its welcome, it was perhaps necessary to digest the big gains. Also keep in mind that a consolidation Read More 

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