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

Paypal Guns for a New High

by Arthur Hill

Stocks making new 52-week highs are clearly in uptrends and leading. Even though Paypal is just shy of a 52-week high, the bigger uptrend and wedge point to new highs in the near future. First and foremost, Paypal is in a long-term uptrend because the 50-day EMA is above the 200-day EMA and the close is above the rising 200-day EMA. After hitting a new high in late January, the stock corrected with a large falling wedge into mid May. This correction was needed to work off the overbought conditions created in January. The falling wedge is a typical pattern for a correction and the Read More 

Don't Ignore This Chart

Ross Stores Stalls after Breakout

by Arthur Hill

Ross Stores was hit hard with a high volume gap down in late May, but immediately firmed and recovered. The stock broke out of a long triangle in early June and then stalled with a small flag last week. Basically, we have two bullish continuation patterns at work.   The long-term trend is up because the 50-day EMA is above the 200-day EMA and the stock recorded a 52-week high last Monday. With the long-term trend up, the long triangle consolidation is considered a bullish continuation pattern. The breakout, therefore, signals an end to this rest period and a resumption of the bigger Read More 

Don't Ignore This Chart

Does JP Morgan (JPM) Repeat Last Years Performance?

by Greg Schnell

JPM has been drifting lower since March 2018. While it is still about the 40 week moving average, it is definitely not one of the stronger stocks out there. The SCTR has dropped to 40, which is near the lowest levels on the chart. While there is a topping structure on the chart, the question approaching is: Will the neckline hold? Interestingly enough, JPM had almost the identical chart pattern set up a year ago. After the stock broke below 82 in late may 2017, it started a steely surge that saw the stock move 50% in 8 months!  So what is an investor to do now? The right answer Read More 

Don't Ignore This Chart

Rockwell Automation: A Big Correction, but an Even Bigger Advance

by Arthur Hill

Rockwell Automation reversed its downtrend with a big surge in May, worked off overbought conditions and looks poised to resume its uptrend. The chart below shows ROK with a high-volume plunge in late April, a high-volume reversal day and a sharp recovery in early May.  This recovery extended with high volume as the stock broke above the April high. The strength of this advance leads me to believe that it reversed the downtrend from January to April. Rockwell was quite overbought in late May and worked off this overbought condition with a pullback to the Read More 

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Norfolk Southern (NSC) Brakes At New Highs

by Greg Schnell

Norfolk Southern put in a weak break to new highs today. In the zoom box on the right, the candle was a nice clean break out but at the end of the day, it had fully reversed and closed lower than the open.  It did close up compared to Monday, so it will show as bullish volume, but its a little suspect.  A few things to note on the chart. The MACD is making a lower high here as the price tries to break out. Rather than suggesting NSC won't go higher, it just might need a little pullback and reset the momentum oscillators. One other clue I don't like is how deep the Read More 

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A Classic Continuation Pattern Takes Shape in Danaher

by Arthur Hill

Danaher (DHR) is a conglomerate that is the 15th largest component (1.91%) of the Health Care SPDR (XLV) and the 5th largest component (5.43%) of the Medical Devices ETF (IHI). XLV broke out last week and IHI has been leading for some time. The stock is also looking strong as an ascending triangle takes shape. The chart shows Danaher with the Percentage Price Oscillator (50,200,0) in the indicator window. This indicator measures the percentage difference between the 50-day EMA and 200-day EMA. I use it to define the long-term trend and my trading bias. The PPO has been positive for over a Read More 

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Allergan (AGN) Thrusts To Fresh Three Month Highs

by Greg Schnell

Allergan put on a nice move over the last two days on news that Carl Icahn was in the stock with David Tepper. A big volume surge of 10 million shares over two days suggests more than a passing interest in this stock.  As pharmaceutical stocks seem to be enjoying renewed attention, this particular gain is big. This stock showed up on Thursday in the big movers on the home page. I covered off the home page idea generator on The Final Bar 2018-06-08 and specifically mentioned Allergan. You can see that video below.  I host a new TV show on Read More 

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McCafe Is Worth Looking At (MCD)

by Greg Schnell

McDonald's is in the process of rolling out a few new store formats. I saw one first hand in Sydney, Australia on its opening week. While there were some bugs to be worked out at the time, the format was interesting. Well, apparently it's full steam ahead with the format and the plan is to turn 1000 stores each year. The chart has been in a terrific up trend through 2017. In 2018 it has been consolidating. Well, that all changed today with a burst out of the top of the range. The break out has a nice volume bar with another full day to be added. The MACD turning up just above Read More 

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Oil Hits Potential Reversal Zone

by Arthur Hill

Oil fell rather sharply over the last two weeks, but the long-term trend is up and two technical indicators point to a bounce. The chart below shows the USO Oil Fund (USO) in the top window, RSI for USO in the middle and the Light Crude Continuous Contract ($WTIC) in the lower window. USO is fine for short-term analysis, but I prefer $WTIC for long-term analysis. First and foremost, the long-term trend is up as crude advanced from the mid 40s in June 2017 to the low 70s in May. Oil hit a 52-week high in May and remains well above its rising 200-day SMA. Read More 

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Cameco (CCJ) Breaks Out Of The Base

by Greg Schnell

Cameco has underperformed for years. About 6 months ago, Cameco started to limit Uranium supply. Now the stock looks set up to run.  The SCTR is moving back above 75 which is a sign of a strong stock. The Full Stochastics are turning up above 50 which is a bull market trait. Price is moving to new 52 week highs.  On the recent pullback, volume was light. Bullish. Now the PPO is above zero and looks set up to make higher highs. Another bullish trait.  The big picture is the three year base at $13. If this Read More 

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