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

Bank Of America (BAC) Approaches Former Highs

by Greg Schnell

Bank of America (BAC) is approaching the highs hit back in March. This is technically an important setup for the stock. In the big picture, the March 2018 high had a lot less momentum than the March 2017 high as shown by the PPO indicator.  As the stock rallies up to the old highs, the PPO momentum is bouncing off the zero level. This can mean the stock is making a reset in momentum and starting its next run. However, a failure to make a higher high in momentum would suggest caution for the bulls. The green trend line on the PPO is an important place to watch the price action of Read More 

Don't Ignore This Chart

Is The Mouse House Going Vertical? (DIS)

by Greg Schnell

With all the attention late last year on Disney with the ESPN subscription levels, the cast at Disney announced they were launching their own 'over the top' service. In July, Disney secured the buying of 21st Century Fox for $71 Billion. Needless to say, that investment is more than just a casual 'filling in some gaps' for Disney. At the completion of the deal, it is estimated Disney will own 40% of the box office. That's a wow. So with the Mouse House coming directly to your house, what do investors think? Well, they like this a lot. Disney could break out to all time highs after Read More 

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Gilead Gets another Bollinger Band Squeeze

by Arthur Hill

Gilead is in the midst of its fourth Bollinger Band squeeze in the past year. The last four instances foreshadowed pretty strong moves so I will be watching the current squeeze closely for the next directional clue. A Bollinger Band squeeze occurs when the bands contract and the Bandwidth indicator moves to the low end of its range. The chart shows Bollinger Bands shaded in pink and BandWidth in the indicator window. BandWidth measures the difference between the bands as a percentage of the closing price. Volatility contracts when the Bollinger Bands narrow and this Read More 

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J B Hunt Starts Accelerating (JBHT)

by Greg Schnell

JB Hunt is one of America's largest fleets. Amassing a fleet of over 12,000 trucks and 100,000 trailers, it's clear that JBHT has a pulse across North America's industries. With 124,000 employees, this industry is people intensive and flourishes when the economy is accelerating.  I am writing this article while heading north to the Montney oilfield in Northwest Alberta. I'm feeling the highway vibe their operators enjoy as the sky constantly changes while checking out the August 2, 2018 sunset. Thursday saw the chart of JB Hunt jump as buyers Read More 

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Waters Corp Stalls Near Key Retracement

by Arthur Hill

Waters Corp led the market in 2017 with a 65 percent gain, but lagged in 2018 as the stock corrected the last six months. I am watching this correction pattern for a breakout that would signal a continuation of the bigger uptrend. Waters Corp makes analytical equipment and software for laboratories and scientists. How long and how far should a correction extend? When does a correction turn into a something more, such as a bigger downtrend? Those are, of course, the million-dollar questions when analyzing a chart. A lot depends on your timeframe so keep in mind that this is a weekly chart Read More 

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Verizon (VZ) Tries To Connect With New Highs

by Greg Schnell

Lately the telecoms have performed pretty well. As Verizon has new highs in site, its important to check what needs to happen. Verizon (VZ) has had an important resistance layer at $51.50 which has frustrated shareholders for a couple of years. The last four tall volume bars are up weeks. I do like the strong momentum on the PPO. The full stochastics sits on the top of the range which is bullish. The SCTR appears to have a support resistance layer at the fifty level. I think if the uptrend is going to continue, the stock needs to continue Read More 

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US Bancorp Makes a Break for It

by Arthur Hill

US Bancorp lagged the broader market the first half of the year, but managed to firm from March to June and lead with a breakout in July. The chart shows USB falling from 57 to 49 with a sharp decline from late January to late March. The stock managed to firm after this decline and traded in the 48 to 52 range for over three months. Signs of buying pressure began to appear with the island reversal at the end of May. This reversal occurred with a surge in upside volume and upside volume continued to outpace downside volume in June and July. With Read More 

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Best Buy Sits Just Below A Buy Point (BBY)

by Greg Schnell

Best Buy (BBY) was all but thrown out in the retail washout a few years ago. 2017 was a huge year for the stock. In 2018, the stock has consolidated all year. Now Best Buy sits just below a buy point on a breakout trade plan. The SCTR is holding in above 50 but is still pointed down at this point. After consolidating for so many months, it has lost a little price momentum.  The Full Stochastic indicator suggests the trend is turning up again. Currently the stock trades sideways in a 7-week sideways consolidation, holding just above the 10 week moving average. The PPO shows a gentle Read More 

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Danaher Traces out Large Bullish Continuation Pattern

by Arthur Hill

Danaher is part of a strengthening sector (healthcare) and accounts for around 5.5% of the Medical Devices ETF (IHI), which is one of the strongest industry group ETFs this year. XLV is one of the best performing sectors over the last three months and IHI sports a parade of 52-week highs over the last few months. On the price chart, the long-term uptrend is up because the stock recorded 52-week highs in January and July. Even though price action has been flat the last five months, an ascending triangle formed and this is a bullish continuation pattern. Read More 

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NASDAQ 100 Tracking ETF (QQQ) Ups The Risk Profile

by Greg Schnell

The Nasdaq 100 tracking ETF (QQQ) suffered a rough day today. It closed higher but without question the afternoon showed signs of the bullish trend weakening. After a strong gap up in the morning on Alphabet's earnings backdrop, the intraday chart rolled over quite hard. What makes this a little more difficult is that the momentum shown by the MACD is lower currently than on the June high. This setup looks very similar to the March 13th high. One other clue is if the QQQ starts underperforming the $SPX. If that happens, money will rotate away if the QQQ starts to underperform. This Read More 

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